1. real estate

Susan Rohan, Roseville, chair
Jack Duran, Placer County
George Magnuson, Rocklin
Paul Joiner, Lincoln
Robert Weygandt, Placer County
Mary Dietrich, Executive Director
MEETING OF THE BOARD OF DIRECTORS
AGENDA
January 8, 2015 6:00 PM
Materials Recovery Facility Administration Building
3033 Fiddyment Road, Roseville, CA 95747
Materials related to an item on this Agenda submitted to the Board of Directors after distribution of the agenda packet are available for public
inspection at the Clerk of the Board, 3033 Fiddyment Road, Roseville, CA 95747, during normal business hours and at the meeting location
immediately before and during the meeting. The Western Placer Waste Management Authority is committed to ensuring that persons with
disabilities are provided the resources to participate fully in its public meetings. If you are hearing impaired, we have listening devices
available. If you require additional disability-related modifications or accommodations, including auxiliary aids or services, please contact the
Clerk of the Board at (916) 543-3960. If requested, the agenda shall be provided in appropriate alternative formats to persons with
disabilities. All requests must be in writing and must be received by the Clerk five business days prior to the scheduled meeting for which you
are requesting accommodation. Requests received after such time will be accommodated if time permits.
1.
2.
3.
4.
5.
6.
7.
Call Meeting to Order
Pledge of Allegiance (Director Joiner)
Roll Call
Election of Officers (Mary Dietrich)
Elect officers for calendar year 2015.
Statement of Meeting Procedures (Clerk of the Board)
Agenda Approval
Timed Items
6:05 P.M.
a.
Tipping Fee Increase for FY 2015/16 (Eric Oddo)
After conducting a public hearing:
Pg. 3
Pg. 5
1. Authorize the Chair to sign the attached Resolution 15-1
increasing tipping fees effective July 1, 2015; and
2. Find this action exempt from CEQA pursuant to Section
21080(b)(8) of the Public Resources Code.
8.
9.
Public Comment
This is a time when persons may address the Board regarding items not on this
Agenda. It is requested that comments be brief, since the Board is not permitted to
take any action on items addressed under Public Comment.
Correspondence (Eric Oddo)
Late-arriving correspondence (If any, distributed at meeting and noted by Chair.)
10.
Announcements & Information
a.
Reports from Directors
----
b.
Report from the Executive Director (Mary Dietrich)
----
c.
Monthly Financial Reports (Valerie Bayne)
Pg. 13
Recycling and Disposal Made Easy
11476 C Avenue Auburn, CA 95603
(916) 543-3960 / (916) 543-3990 fax
www.wpwma.com
WPWMA BOARD AGENDA
JANUARY 8, 2015
PAGE 2
11.
12.
13.
d.
Comprehensive Annual Financial Report (Valerie Bayne)
Pg. 17
e
Monthly Tonnage Reports (Keith Schmidt)
----
Action Items
a.
Minutes of the Board Meeting held December 11, 2014
Approve as submitted.
Pg. 65
b.
Agreement to Prepare a Landfill Gas Strategic Plan (Eric Oddo)
Authorize the Chair to sign an agreement with Capitol Public Finance
Group to develop a landfill gas strategic plan for an amount not to
exceed $168,511.
Pg. 69
Upcoming Agenda Items
The Board may discuss issues of concern that they would like staff to address at
future Board meetings.
Adjournment
2
MEMORANDUM
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TO:
WPWMA BOARD OF DIRECTORS
FROM:
MARY DIETRICH
SUBJECT:
ELECTION OF OFFICERS
DATE: JANUARY 8, 2015
RECOMMENDED ACTION:
Elect officers for calendar year 2015.
BACKGROUND:
Your Board traditionally elects officers during the first meeting of each calendar year.
Current officers are as follows:
Chair:
City of Roseville
Vice Chair:
County of Placer – District 1
Although your Board may elect any member of the Board as Chair or Vice Chair, your
Board has customarily rotated Chair and Vice Chair appointments as follows:
County of Placer – District 2
City of Roseville
County of Placer – District 1
City of Rocklin
City of Lincoln
MD:eo
3
PAGE INTENTIONALLY LEFT BLANK
4
MEMORANDUM
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TO:
WPWMA BOARD OF DIRECTORS
FROM:
MARY DIETRICH / ERIC ODDO
SUBJECT:
TIPPING FEE INCREASE FOR FY 2015/16
DATE: JANUARY 8, 2015
RECOMMENDED ACTION:
After conducting a public hearing:
1. Authorize the Chair to sign the attached Resolution 15-1 increasing tipping fees
effective July 1, 2015; and
2. Find this action exempt from CEQA pursuant to Section 21080(b)(8) of the Public
Resources Code.
BACKGROUND:
Your Board periodically adjusts the WPWMA’s tipping fee structure to reflect current
and future financial needs while ensuring that the WPWMA remains competitive in the
marketplace.
As a result of conservative fiscal decisions by your Board and the cost savings
measures implemented by the WPWMA over the past decade – including the early
repayment of the revenue bonds, increasing the height of the landfill and conducting
competitive procurements for both the MRF and landfill operations – the WPWMA has
been able to forego any significant tipping fee increases since FY 1999/00.
Furthermore, over the past 15 years, most changes in the tipping fee structure have
been rate reductions. Exhibit B provides an historical summary of the tipping fees
charged at the WPWMA’s facility.
To ensure that sufficient funding is available for both ongoing operations and future
projects and to account for inflation, staff believes it is prudent to implement a modest
increase to the WPWMA’s tipping fee structure. The proposed tipping fee structure is
presented in Exhibit A.
Notice of the public hearing to consider the proposed tipping fee increases was
published twice in the Roseville Press Tribune, Placer Herald, Lincoln News Messenger
and Auburn Journal newspapers 1. Notice was also posted at each of the facility
scalehouses, on all customer disposal tickets generated at the WPWMA’s scalehouses,
on the WPWMA’s website and distributed to each of the Participating Agencies
administrative offices 22 days prior to the public hearing. A copy of the notice that was
posted in the newspapers, on the WPWMA’s website, at the scalehouses and sent to
1
Notices were advertised in the Roseville Press Tribune on Friday December 26, 2014 and Friday January 2, 2015; in the Lincoln
News Messenger and Placer Herald on Thursday December 25, 2014 and Thursday January 1, 2015 and in the Auburn Journal on
December 23 and 30, 2014.
5
WPWMA BOARD OF DIRECTORS
TIPPING FEE INCREASE FOR FY 2015/16
JANUARY 8, 2015
PAGE 2
the Participating Agencies is included as Exhibit C. A copy of the notice printed on the
disposal tickets is included as Exhibit D.
ENVIRONMENTAL CLEARANCE:
The recommended action is exempt from CEQA under Public Resources Code Section
21080(b) (8), provided your Board adopts findings that the rates are necessary to meet
operating expenses necessary for the maintenance of services.
FISCAL IMPACT:
Staff anticipates that annual revenues will increase by approximately $664,000
beginning in FY 2015/16 if the proposed fee structure is approved.
ATTACHMENT:
RESOLUTION 15-1
EXHIBIT A – PROPOSED TIPPING FEES
EXHIBIT B – TIPPING FEE HISTORY FOR SELECT MATERIALS
EXHIBIT C – NOTICE OF PUBLIC HEARING
EXHIBIT D – EXAMPLE DISPOSAL TICKET NOTICE
MD:EO
6
Before the Board of Directors
Western Placer Waste Management Authority
In the matter of:
Resolution No.
15-1
REVISION TO THE TIPPING FEES CHARGED BY THE
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
The following RESOLUTION was duly passed by the Board of Directors of the Western
Placer Waste Management Authority at a regular meeting held January 8, 2015, by the
following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
Chair, Western Placer
Waste Management Authority
Attest:
Clerk of said Board
WHEREAS, the Board of Directors has the duty to establish tipping fees for the Western
Placer Waste Management Authority’s facilities; and
WHEREAS, tipping fees must cover nearly all the costs of operating these facilities; and
WHEREAS, the proposed tipping fees shown in Exhibit A (attached) reasonably
correspond to the cost of providing services.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Western Placer
Waste Management Authority, that this Board approves the tipping fees presented in
Exhibit A, effective July 1, 2015.
7
EXHIBIT A
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TIPPING FEES EFFECTIVE JULY 1, 2015
Category
Current Fee
Proposed Fee
Change
Municipal Solid Waste
$68.00/ton
$12.00/cy
$69.00/ton
$14.00/cy
$1.00/ton
$2.00/cy
Construction and Demolition Debris
$46.00/ton
$12.00/cy
$47.00/ton
$14.00/cy
$1.00/ton
$2.00/cy
Sludge and Mixed Inerts 2
$31.50/ton
$33.00/ton
$1.50/ton
Commercial Food Waste
$38.00/ton
$40.00/ton
$2.00/ton
Source Separated Green Waste
$35.00/ton
$6.00/cy
$36.50/ton
$7.00/cy
$1.50/ton
$1.00/cy
Source Separated Wood Waste 3
$25.00/ton
$6.00/cy
$26.00/ton
$7.00/cy
$1.00/ton
$1.00/cy
Inert Materials 4
$15.00/ton
$12.00/cy
$16.00/ton
$14.00/cy
$1.00/ton
$2.00/cy
Water treatment plant sludge
$5.00/ton
$7.50/ton
$2.50/ton
Refrigerated Appliances
$27.00 each
$30.00 each
$3.00 each
Non-refrigerated Appliances
$4.00 each
$5.00 each
$1.00 each
Car and light truck tires
$2.50 each
$3.00 each
$0.50 each
Semi-trailer tires
$15.00 each
$17.50 each
$2.50 each
Tractor tires
$60.00 each
$70.00 each
$10.00 each
Euclid & Bulk tires
$150.00/ton
$175.00/ton
$25.00/ton
2
3
4
Applies to loads that qualify as Inert Materials but contain the presence of a small amount of contaminants.
Applies to separated loads of wood, including: lumber, plywood, particleboard, and tree trunks and limbs less than
24 inches in diameter and greater than 1 inch in diameter. Loads can contain no more than 1% of contaminants.
Contaminants include treated or painted wood.
Applies to separated loads of dirt, rock, asphalt and concrete if free from rebar or mesh and broken into pieces less
than 2’ x 2’ x 4”.
8
EXHIBIT B
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TIPPING FEE HISTORY FOR SELECT MATERIALS
Fiscal
Year
MSW
1995/96
C&D
Sludge
Greenwaste
$57.75
$28.50
N/A
1996/97
$66.00
$30.00
1997/98
$68.00
$30.90
1998/99
$72.00
$32.50
Woodwaste
Foodwaste
Inerts
N/A
$10.00
N/A
$45.00
1999/00
$72.75
N/A
$32.85
2000/01
2001/02
2002/03
$12.50
2003/04
2004/05
$69.75
2005/06
$50.00
2006/07
$25.00
2007/08
$31.50
$35.00
$38.00
2008/09
2009/10
$15.00
$46.00
2010/11
2011/12
$68.00
2012/13
2013/14
2014/15
2015/16
$69.00
$47.00
$33.00
$36.50
$26.00
$40.00
$16.00
1.
Tipping fees shown in the table represent the cost per ton to dispose of particular material. Per cubic yard
disposal rates have been omitted for purposes of clarity.
2.
The materials shown above represent approximately 99.5% of the overall tonnage and 99.6% of the total
tipping fee revenue typically received by the WPWMA. Tipping fees associated with less prominent
materials such as appliances and tires have been omitted for purposes of clarity.
3.
N/A – no tipping fee established during the subject time period.
9
EXHIBIT C
NOTICE OF PUBLIC HEARING
BY WHOM: Western Placer Waste Management Authority
WHERE:
Western Placer Waste Management Authority’s
Administrative Offices
3033 Fiddyment Road
Roseville, CA 95747
WHEN:
Thursday January 8, 2015 6:05 P.M.
PURPOSE: NOTICE IS GIVEN that the Western Placer Waste Management
Authority will conduct a public hearing to receive input on
increasing its tipping fees beginning July 1, 2015 as identified
below. The proposed fee increases are intended to ensure
sufficient funding is available for both ongoing operations and future
projects and to account for inflation.
Interested persons are invited to attend.
Further information is available at WPWMA.com.
PUBLISH:
Roseville Press Tribune, Rocklin Herald, Lincoln News Messenger,
Auburn Journal
TIPPING FEES
Material Category
Current
Proposed
Municipal Solid Waste
$68.00/ton, $12.00/cy
$69.00/ton, $14.00/cy
Construction and Demolition Debris
$46.00/ton, $12.00/cy
$47.00/ton, $14.00/cy
Sludge and Mixed Inerts
$31.50/ton
$33.00/ton
Commercial Food Waste
$38.00/ton
$40.00/ton
Source Separated Green Waste
$35.00/ton, $6.00/cy
$36.50/ton, $7.00/cy
Source Separated Wood Waste
$25.00/ton, $6.00/cy
$26.00/ton, $7.00/cy
Inert Materials
$15.00/ton, $12.00/cy
$20.00/ton, $20.00/cy
$5.00/ton
$7.50/ton
Refrigerated Appliances
$27.00 each
$30.00 each
Non-refrigerated Appliances
$4.00 each
$5.00 each
Car and light truck tires
$2.50 each
$3.00 each
Semi-trailer tires
$15.00 each
$17.50 each
Tractor tires
$60.00 each
$70.00 each
Euclid & Bulk tires
$150.00/ton
$175.00/ton
Water treatment plant sludge
10
EXHIBIT D
EXAMPLE DISPOSAL TICKET NOTICE
11
PAGE INTENTIONALLY LEFT BLANK
12
13
14
15
PAGE INTENTIONALLY LEFT BLANK
16
WESTERN PLACER WASTE
MANAGEMENT AUTHORITY
County of Placer, California
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEARS ENDED
JUNE 30, 2014 AND 2013
PREPARED BY:
Valerie Bayne
Placer County, Department of Facility Services
Administrative Services Manager
17
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TABLE OF CONTENTS
Page(s)
Introductory Section
Transmittal Letter........................................................................................................................................ i-v
Board of Directors and Managing Staff ....................................................................................................... vi
Organizational Chart ................................................................................................................................... vii
Financial Section
Independent Auditors’ Report.................................................................................................................... 1-2
Management’s Discussion and Analysis (Required Supplementary Information) ................................... 3-9
Basic Financial Statements:
Statements of Net Position ..................................................................................................................... 10
Statements of Revenues, Expenses and Changes
in Net Position ...................................................................................................................................... 11
Statements of Cash Flows ...................................................................................................................... 12
Notes to the Basic Financial Statements ........................................................................................... 13-20
Other Report:
Independent Auditor's Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ..................................................................................................... 21-22
Statistical Section:
Narrative of Categories of Statistical Section ........................................................................................ 23
Net Position by Component .............................................................................................................. 24-25
Total Annual Revenues ..................................................................................................................... 26-27
Total Annual Expenses ..................................................................................................................... 28-29
Changes in Net Position .................................................................................................................... 30-31
Schedule of Current Tipping Fees.......................................................................................................... 32
Ten Largest Principal Customers ........................................................................................................... 33
Demographic and Economic Statistics................................................................................................... 34
Ten Largest Employers .......................................................................................................................... 35
Operating Indicators ............................................................................................................................... 36
Schedule of Annual Refuse Tonnage ..................................................................................................... 37
Customer Accounts ................................................................................................................................ 38
18
19
20
21
22
23
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
BOARD OF DIRECTORS AND MANAGING STAFF
The Western Placer Waste Management Authority is governed by representatives
of its member agencies. They are:
Jack Duran
County of Placer
Robert M. Weygandt
County of Placer
George Magnuson
City of Rocklin
Paul Joiner
City of Lincoln
Susan Rohan
City of Roseville
The Western Placer Waste Management Authority is staffed by Placer County’s
Department of Facility Services. The Western Placer Waste Management
Authority’s managing staff are:
Mary Dietrich
Executive Director
Bill Zimmerman
Deputy Executive Director
Eric Oddo
Environmental Engineering
Program Manager
Valerie Bayne
Administrative Services
Manager
vi
24
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
ORGANIZATIONAL CHART
vii
25
Vavrinek, Trine, Day & Co., LLP
VA L U E T H E D I F F E R E N C E
Certified Public Accountants
INDEPENDENT AUDITORS’ REPORT
Board of Directors
Western Placer Waste Management Authority
Auburn, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Western Placer Waste Management Authority (the
Authority) as of and for the year ended June 30, 2014, and the related notes to the financial statements, as listed in
the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Authority as of June 30, 2014, and the changes in financial position and its cash flows thereof for
the year then ended in accordance with accounting principles generally accepted in the United States of America.
1
2151 River Plaza Drive, Suite 308 Sacramento, CA 95833 Tel: 916.570.1880 Fax: 916.570.1875 www.vtdcpa.com
FRESNO
•
L AGUN A HILLS
•
PA L O A L T O
•
PLEASANTON
•
26
RAN C HO CUC AMON GA
•
RIVERSIDE
•
SAC R A M E N TO
Prior Period Financial Statements
The financial statements of the Western Placer Waste Management Authority as of June 30, 2013, were audited
by other auditors whose report dated January 29, 2014, expressed an unmodified opinion on those statements.
Other Matters
Required Supplemental Information
Accounting principles generally accepted in the United States of America require that the Management
Discussion & Analysis as listed in the table of contents be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2014 on
our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Authority’s internal control over financial reporting and compliance.
Sacramento, California
December 1, 2014
2
27
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
This section of the annual financial report of the Western Placer Waste Management Authority
(Authority) presents a discussion and analysis of financial performance during the fiscal years ended
June 30, 2014 and 2013. Please read it in conjunction with the Authority’s financial statements and
accompanying notes, which follow this section.
FINANCIAL HIGHLIGHTS
x
x
x
x
x
x
x
x
Total assets at June 30, 2014 were approximately $86.7 million and increased approximately $1.1
million or 1.3% from the prior year.
Total liabilities at June 30, 2014 were approximately $13.7 million and increased approximately
$1.5 million or 11.9% from the prior year.
The Authority’s total net position decreased by approximately $362 thousand during the fiscal
year ended June 30, 2014, a decrease of 0.5% over the prior year.
Total operating revenues decreased about $81 thousand during the fiscal year ended
June 30, 2014; a decrease of approximately 0.4% from the prior year, while operating expenses
decreased approximately $831 thousand or 3.6% from the prior year.
Total assets at June 30, 2013 were approximately $85.6 million and decreased approximately
$402 thousand or 0.5% from the fiscal year ended June 30, 2012.
Total liabilities at June 30, 2013 were approximately $12.2 million and increased approximately
$1.2 million or 10.6% from the fiscal year ended June 30, 2012.
The Authority’s total net position decreased by approximately $1.6 million during the fiscal year
ended June 30, 2013, a decrease of 2.1% over the fiscal year ended June 30, 2012.
Total operating revenues increased about $558 thousand during the fiscal year ended
June 30, 2013; an increase of approximately 2.8% from the prior year, while operating expenses
increased approximately $2.1 million or 10.3% from the fiscal year ended June 30, 2012.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
The discussion and analysis in this section are intended to serve as an introduction to the Authority’s
basic financial statements. The Authority’s basic financial statements comprise three parts: (1)
management’s discussion and analysis, (2) the basic financial statements, and (3) notes to the basic
financial statements.
The basic financial statements provide information about the Authority’s overall financial status. The
basic financial statements also include notes that explain some of the information in the basic financial
statements and provide more detailed data.
The Authority’s basic financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) as applied to governmental units on a full
accrual basis. Under this basis, revenues are recognized in the period in which they are earned, expenses
are recognized in the period in which they are incurred. All assets and liabilities associated with the
operation of the Authority are included in the Statements of Net Position.
The Statements of Net Position presents the financial position of the Authority on a full accrual basis and
provides information about the nature and amount of resources and obligations at year-end.
3
28
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
Statements of Net Position
As of June 30, 2014, total assets have increased approximately 1.3% and liabilities have increased
11.90%. Assets increased primarily due to an increase in cash and investments in the Treasury Pool
offset by decreases in capital assets and other assets. The increase in current liabilities is primarily due to
the timing of contractor payments. Noncurrent liabilities increased as a result of the increase in the
estimated landfill volume used during the fiscal year. The following table summarizes assets, liabilities
and net position as of June 30, 2014 and 2013.
2014
27,677,145
42,510,194
16,514,863
86,702,202
2013
$ 23,493,208
45,109,770
17,007,863
85,610,841
Variance
17.8%
-5.8%
-2.9%
1.3%
Current liabilities
Noncurrent liabilities
Total liabilities
3,057,848
10,641,323
13,699,171
2,039,875
10,205,702
12,245,577
49.9%
4.3%
11.9%
Net investment in capital assets
Restricted
Unrestricted
Total net position
42,510,194
11,525,044
18,967,793
73,003,031
45,109,770
11,310,854
16,944,640
$ 73,365,264
-5.8%
1.9%
11.9%
-0.5%
Current assets
Capital assets, net
Other assets
Total assets
$
$
The Authority’s net position reflects restrictions imposed by outside parties for closure and postclosure
care. The remaining net position represents the unrestricted portion and the Authority’s net investment in
capital assets. Total net position decreased approximately $362 thousand or 0.5% from the prior year.
4
29
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
Total assets, as of June 30, 2013, decreased approximately 0.5% and liabilities increased 10.6%. Assets
increased primarily due to an increase in cash and investments in the Treasury Pool offset by decreases in
capital assets and other assets. The decrease in capital assets primarily was a result of the year’s
depreciation reported by the Authority. Current liabilities decreased primarily due to the timing of
contractor payments. Noncurrent liabilities increased primarily due to the Authority being required to
revise its landfill closure and postclosure cost estimates to comply with changes in the state regulation.
These regulatory changes included utilizing more conservative labor rates and larger project
contingencies. As a consequence of revising the cost estimates, the Authority’s liability for closure and
postclosure activities increased $2.2 million in the fiscal year ended June 30, 2013. The magnitude of this
increase is expected to be a one-time anomaly with future annual contributions anticipated to be
consistent with historical contribution amounts. The following table summarizes assets, liabilities and net
position as of June 30, 2013 and 2012.
Current assets
Capital assets, net
Other assets
Total assets
2013
$ 23,493,208
45,109,770
17,007,863
85,610,841
2012
$ 20,774,128
47,594,928
17,643,798
86,012,854
Variance
13.1%
-5.2%
-3.6%
-0.5%
2,039,875
10,205,702
12,245,577
3,085,423
7,983,122
11,068,545
-33.9%
27.8%
10.6%
45,109,770
11,310,854
16,944,640
$ 73,365,264
47,594,928
11,274,020
16,075,361
$ 74,944,309
-5.2%
0.3%
5.4%
-2.1%
Current liabilities
Noncurrent liabilities
Total liabilities
Net investment in capital assets
Restricted
Unrestricted
Total net position
The Authority’s net position reflects restrictions imposed by outside parties for closure and postclosure
care. The remaining net position represents the unrestricted portion and the Authority’s investment in
capital assets. Total net position decreased approximately $1.6 million or 2.1% from the prior year
primarily due to the $2.2 million increase in noncurrent liabilities as a result of the change in the landfill
closure and postclosure cost estimates which were described in the above paragraph.
5
30
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
Changes in Net Position
The following table summarizes the changes in net position for the fiscal years ended June 30, 2014 and
2013:
Operating revenues
Operating expenses
Solid waste contractor
Closure and postclosure care costs
General and administrative
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues
Change in net position
Net position, beginning of year
Net position, end of year
2014
$ 20,674,637
2013
$ 20,755,448
Variance
-0.4%
14,661,786
435,621
4,187,724
2,724,347
22,009,478
13,846,375
2,222,581
4,064,064
2,707,394
22,840,414
5.9%
-80.4%
3.0%
0.6%
-3.6%
(1,334,841)
972,608
(362,233)
73,365,264
$ 73,003,031
(2,084,966)
505,921
(1,579,045)
74,944,309
$ 73,365,264
-36.0%
92.2%
-77.1%
-2.1%
-0.5%
Fiscal year 2014’s operating revenues decreased approximately $81 thousand or 0.4% from prior year.
The approximate $831 thousand or 3.6% decrease in total operating expenses is largely due to the
increase in fiscal year 2014’s solid waste contractor costs of $815 thousand offset with the $1.8 million
decrease in the fiscal year’s landfill closure and postclosure care costs. The decrease in fiscal year 2014’s
landfill closure and postclosure care costs is an offset of fiscal year 2013’s increase of $1.8 million over
the costs incurred during fiscal year 2012. The cause of the $1.8 million net changes in landfill closure
and postclosure care costs between fiscal years 2014, 2013 and 2012 was due to the Authority’s revision
of its landfill closure and postclosure cost estimates during the 2013 fiscal year and was described in
further details in the Statement of Net Position section above. The $467 thousand or 92.2% increase in
fiscal year 2014’s nonoperating revenues over fiscal year 2013 was due to the change in the fair market
value of the Authority’s cash and investments.
6
31
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
The following table summarizes the changes in net position for the fiscal years ended June 30, 2013 and
2012:
Operating revenues
Operating expenses
Solid waste contractor
Closure and postclosure care costs
General and administrative
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues
Change in net position
Net position, beginning of year
Net position, end of year
2013
$ 20,755,448
2012
$ 20,197,582
Variance
2.8%
13,846,375
2,222,581
4,064,064
2,707,394
22,840,414
13,515,891
379,246
4,220,829
2,599,854
20,715,820
2.4%
486.1%
-3.7%
4.1%
10.3%
(2,084,966)
505,921
(1,579,045)
74,944,309
$ 73,365,264
(518,238)
790,758
272,520
74,671,789
$ 74,944,309
302.3%
-36.0%
-679.4%
0.4%
-2.1%
In the fiscal year-ended 2013, operating revenues increased approximately $558 thousand or 2.8% from
prior year. Operating expenses increased approximately $2.1 million largely due to the increase in
landfill closure and postclosure care costs of $1.8 million.
CAPITAL ASSETS
As of June 30, 2014 and 2013, the Authority’s investment in capital assets was approximately $42.5 and
$45.1 million, respectively (net of accumulated depreciation). The composition of capital assets is as
follows:
Land
Land improvements
Buildings and improvements
Equipment
Total
Less accumulated depreciation
Capital assets – net
2014
$ 13,024,848
2,099,209
57,959,949
541,564
73,625,570
(31,115,376)
$ 42,510,194
Additional information regarding capital assets can be found in Note 4.
7
32
2013
$ 13,024,848
2,099,166
57,959,949
416,835
73,500,798
(28,391,028)
$ 45,109,770
Variance
0.0%
0.0%
0.0%
29.9%
0.2%
9.6%
-5.8%
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
As of June 30, 2013 and 2012, the Authority’s investment in capital assets was approximately $45.1 and
$47.6 million, respectively (net of accumulated depreciation). The composition of capital assets is as
follows:
2013
2012
Variance
$ 13,024,848 $ 13,024,848
0.0%
2,099,166 -100.0%
2,099,166
100.0%
57,959,949
57,959,949
0.0%
416,835
200,866
107.5%
73,500,798
73,284,829
0.3%
(28,391,028)
(25,689,901)
10.5%
$ 45,109,770 $ 47,594,928
-5.2%
Land
Construction in progress
Land improvements
Buildings and improvements
Equipment
Total
Less accumulated depreciation
Capital assets – net
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
After several years of declining tonnages due to a decline in housing and commercial development, the
Authority experienced a modest increase in waste flows which provided revenues sufficient to cover
expenses and allow for continued contributions to operating reserves. The Authority has maintained a
good hold on the waste stream through its flow control agreements and by maintaining competitive
tipping fees for green waste, wood waste, commercial food waste, inert materials, and construction &
demolition waste. A convenient location and reasonable rates have also continued to attract self-haul
customers to the facility.
The Authority is currently working with the municipalities that utilize the Authority’s facility to enter into
new, short-term flow control agreements. These new flow control agreements are anticipated to be for a
term of up to two years which will provide for a continued commitment of waste flows to the facility
while the Authority continues its ongoing investigation into organics management strategies as noted
below. These new flow control agreements are anticipated to be effective in the fiscal year ending June
30, 2015. Longer term flow control agreements are expected to be established if the Authority develops a
regional organics management and recycling system as noted below.
In response to recent changes in state law, the Authority is investigating the technical, economic, and
environmental feasibility of managing a larger portion of the organic fraction of the waste stream
(primarily food waste) using either anaerobic digestion technology or composting. While the State has
mandated that commercial generators participate in a program to divert organics from landfilling, the
Authority is currently investigating a more system-wide approach to recover and process both
commercially-generated and residentially-generated organic materials. Findings from the Authority’s
investigation are expected to be presented to the Authority Board for their consideration in fiscal year
2014/2015.
The Authority is proceeding with the development of its next planned landfill module (Module 5) base
liner system as well as a partial final cover of its southern-most landfill slopes. Design of the liner and
cover systems occurred in fiscal year 2013/2014 and construction is scheduled to be completed in fiscal
year 2014/2015. While funding for design of the liner and cover systems came from Operating Revenues;
construction costs will be funded from both Operating Revenues and through cancellation of reserves.
The Authority has previously funded, and will continue to fund, a reserve account that includes funding
landfill liner, cover and other construction projects.
8
33
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
The Authority has solicited proposals from consulting firms to prepare a landfill gas strategic plan that
will serve as a guidance document for the Authority to maximize the future value of its LFG asset while
continuing to meet all applicable regulatory and legal operating requirements. The development of the
strategic plan is anticipated to commence in fiscal year 2014/2015 and be completed in fiscal year
2015/2016.
The Authority has been negotiating and is expected to approve an amendment with Energy 2001 (who
leases land from the Authority and produces electricity from landfill gas generated at the landfill) to
extend the term of their lease agreement by one year from April 2017 to April 2018. Under the terms of
the proposed amendment, the Authority is expected to earn additional royalty revenues from the sale of
electricity by Energy 2001 as well realize insurance cost savings associated with Energy 2001’s
operation. Furthermore, a provision in the lease agreement that allows Energy 2001 to take credit against
the first $150,000 in royalties from its most recently installed three engines is estimated to be fully taken
by Energy 2001 be the middle of the fiscal year ending June 30, 2015. As such, the Authority anticipates
realizing a substantial increase in the amount of royalty payments it receives from Energy 2001 in fiscal
year 2014/2015.
The Authority’s tipping fee rate schedule is not expected to change in fiscal year 2014/2015; however to
account for inflation and other anticipated cost increases associated with the Authority’s operation,
increases to the rate structure may be implemented in fiscal year 2015/2016.
CONTACTING AUTHORITY’S FINANCIAL MANAGEMENT
The financial report is designed to provide a general overview of the Authority’s finances for all those
with an interest. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to Valerie Bayne, Administrative Services Manager,
11476 C Avenue, Auburn, California 95603 or call (530) 889-6803.
9
34
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
STATEMENTS OF NET POSITION
JUNE 30, 2014 AND 2013
2014
ASSETS
Current assets:
Cash and investments in Treasury Pool
Petty cash
Accounts receivable, less allowance for uncollectible
accounts of $6,167 for 2014 and $9,188 for 2013
Interest receivable
$
25,402,949
9,400
2013
$
21,255,231
9,400
2,230,445
34,351
2,196,614
31,963
27,677,145
23,493,208
11,525,044
4,989,819
13,024,848
29,485,346
11,310,854
5,697,009
13,024,848
32,084,922
Total noncurrent assets
59,025,057
62,117,633
Total assets
86,702,202
85,610,841
3,036,392
21,456
2,018,361
21,514
3,057,848
2,039,875
10,641,323
10,205,702
13,699,171
12,245,577
42,510,194
11,525,044
18,967,793
45,109,770
11,310,854
16,944,640
Total current assets
Noncurrent assets:
Restricted cash and investments in Treasury Pool
Note receivable
Non-depreciable capital assets
Depreciable capital assets, net of accumulated depreciation
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses
Unearned revenue
Total current liabilities
Noncurrent liabilities:
Estimated liability for landfill closure and postclosure
care costs
Total liabilities
NET POSITION
Net investment in capital assets
Restricted for closure and postclosure
Unrestricted
Total net position
$
73,003,031
$
The notes to the basic financial statements are an integral part of these statements.
10
35
73,365,264
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
2014
OPERATING REVENUES:
Fees from landfill operations
Rental income
Miscellaneous income
$
Total operating revenues
OPERATING EXPENSES:
Solid waste contractor
Depreciation
Professional services - county
Landfill closure and postclosure care costs
Professional services - purchased
Special department expenses
Administration
General liability insurance
Utilities
Communications
Maintenance - buildings and improvements
Travel and transportation
Publications and legal notices
Supplies
Rents and leases
Postage
Commissioners' fees
Maintenance - equipment and computers
Uniforms
Special training expense
Dues, subscriptions, and memberships
Gate operations cash shortage
Total operating expenses
Operating loss
NONOPERATING REVENUES:
Grant revenue
Investment earnings
Total nonoperating revenues
Changes in net position
20,423,095
130,691
120,851
2013
$
20,674,637
20,755,448
14,661,786
2,724,347
2,390,872
435,621
808,780
486,813
211,344
108,708
82,091
23,880
35,446
12,806
5,844
11,314
3,714
2,200
806
1,769
784
393
160
13,846,375
2,707,394
2,344,284
2,222,581
786,218
438,300
234,323
99,112
68,970
27,216
21,231
12,021
8,812
6,674
6,589
3,580
2,000
1,865
1,580
450
408
431
22,009,478
22,840,414
(1,334,841)
(2,084,966)
70,680
901,928
123,333
382,588
972,608
505,921
(362,233)
Net position, beginning of year
(1,579,045)
73,365,264
Net position, end of year
$
73,003,031
74,944,309
$
The notes to the basic financial statements are an integral part of these statements.
11
36
20,317,631
102,935
334,882
73,365,264
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash receipts from customers
Cash receipts from other operating activities
Cash paid to suppliers for goods and services
Net cash provided by operating activities
$
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
State grant receipts
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets
CASH FLOWS FROM INVESTING ACTIVITIES:
Loan repayments received
Investment earnings received
Net cash provided by investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
RECONCILIATION TO THE STATEMENTS OF NET POSITION:
Cash and investments in Treasury Pool
Petty cash
Restricted cash and investments in Treasury Pool
Total cash and cash equivalents
20,389,264
251,484
(17,831,479)
2,809,269
2013
$
20,249,789
437,875
(18,955,921)
1,731,743
70,680
123,333
(124,771)
(222,236)
707,190
899,540
1,606,730
672,769
385,242
1,058,011
4,361,908
32,575,485
2,690,851
29,884,634
$
36,937,393
$
32,575,485
$
25,402,949
9,400
11,525,044
$
21,255,231
9,400
11,310,854
$
36,937,393
$
32,575,485
$
(1,334,841)
$
(2,084,966)
RECONCILIATION OF OPERATING LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Operating loss
Adjustments to reconcile operating loss
to net cash provided by operating activities:
Depreciation
(Increase) decrease in accounts receivable
Decrease in prepaid expenses
Increase (decrease) in accounts payable
and accrued expenses
Increase (decrease) in unearned revenue
Increase in estimated liability for landfill closure
and postclosure care costs
Net cash provided by operating activities
$
2,724,347
(33,831)
-
2,707,394
(67,842)
125
1,018,031
(58)
(1,045,606)
58
435,621
2,222,580
2,809,269
$
The notes to the basic financial statements are an integral part of these statements.
12
37
1,731,743
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 1 – ORGANIZATION AND OPERATIONS
Western Placer Waste Management Authority (Authority) is a public entity created on October 3, 1978 by
a joint exercise of powers agreement between the County of Placer (County) and the Cities of Roseville,
Rocklin, and Lincoln. The Authority is a separate and distinct entity from both the County and Cities,
formed pursuant to Chapter 5, Division 7, Title 1 of the Government Code of the State of California.
Pursuant to the joint powers agreement, the Placer County Treasury is utilized for depositing cash receipts
and making cash disbursements and the Placer County Auditor-Controller maintains the accounting
records for the Authority.
The Authority was formed to acquire, own, operate, and maintain a sanitary landfill site and all related
improvements. The original disposal site comprises 320 acres, and is located in an unincorporated area of
the County between the cities of Roseville and Lincoln. An additional 480 acres were purchased on
August 10, 1990 which lies to the west of the existing landfill site, separated by Fiddyment Road.
Nortech Waste LLC is the landfill site and Materials Recovery Facility (MRF) operator.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The financial statements include all of the financial activities of the Authority and have been prepared in
conformity with accounting principles generally accepted in the United States of America as applied to
governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles. The more
significant of the accounting policies are described below.
Basis of Accounting
The Authority utilizes the accrual basis of accounting in the accompanying financial statements to
account for its enterprise activity. Revenues are recognized in the accounting period in which they are
earned and expenses are recognized in the period in which liabilities are incurred.
The Authority uses a proprietary (enterprise) fund to account for its activities. An enterprise fund may be
used to report any activity for which a fee is charged to external users for goods or services. Enterprise
funds are required for any activity whose principal external revenue sources meet any of the following
criteria: (1) issued debt is backed solely by fees and charges, (2) the cost of providing services for any
activity (including capital costs such as depreciation or debt service) must be legally recovered through
fees or charges, or (3) if the government’s policy is to establish activity fees or charges designed to
recover the cost of providing services. The Authority distinguishes operating and nonoperating revenues
and expenses. Operating revenues and expenses generally result from operating the sanitary landfill. All
revenues and expenses that do not meet this definition are reported as nonoperating.
13
38
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
When both restricted and unrestricted net position are available, unrestricted resources are used only after
the restricted resources are depleted.
Budgetary Process
The Authority prepares an annual operating and capital budget, which is approved and adopted by the
Board of Directors. The budget serves as an approved plan to facilitate financial control and operational
evaluation. California state law does not require formal adoption of appropriated budgets for enterprise
funds.
Cash and Cash Equivalents
Cash and cash equivalents represent the Authority’s share of the County Treasurer’s cash and investment
pool. Cash and cash equivalents are considered to be investment with original maturities of 3 months or
less. For purposes of the statements of cash flows, the Authority’s cash and investment in the County
Treasurer’s pool is considered cash and cash equivalents.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Capital Assets
Additions by the Authority placed in service are recorded for equipment with a cost of $5,000 or more
and for building and improvements with a cost of $50,000 or more. Repairs and maintenance are
recorded as expenses; renewals and betterments are capitalized. The sale or disposal of capital assets are
recorded by eliminating the original cost and related accumulated depreciation, resulting in the
recognition of a gain or loss.
Depreciation has been calculated on each class of depreciable property using the straight-line method over
the shorter of the following estimated useful lives or the remaining years until the landfill is estimated to
be at capacity:
Buildings and improvements and liners
Equipment
14
39
10-50 years
5-20 years
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Effect of New Governmental Accounting Standards Board (GASB) Pronouncements
GASB Statement No. 66 – In March 2012, GASB issued Statement No. 66, Technical Corrections – 2012
– an amendment of GASB Statements No. 10 and No. 62. This statement resolves conflicting guidance
related to 1) fund-based reporting of an entity’s risk financing activities to the general and internal service
fund types, 2) operating lease payments that vary from a straight-line basis, 3) the difference between the
initial investment (purchase price) and the principal amount of a purchased loan or group of loans, and 4)
servicing fees related to mortgage loans that are sold when the stated service fee rate differs significantly
from a current (normal) servicing fee rate. The Authority has determined that this statement is not
applicable.
GASB Statement No. 67 – In June 2012, GASB issued Statement No. 67, Financial Reporting for
Pension Plans – an amendment of GASB Statement No. 25. This statement results from a comprehensive
review of the effectiveness of existing standards of accounting and financial reporting for pensions with
regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This statement is effective for the fiscal year ending
June 30, 2014. The Authority has determined that this statement is not applicable.
GASB Statement No. 70 – In April 2013, GASB issued Statement No. 70, Accounting and Financial
Reporting for Nonexchange Financial Guarantees. This statement improves accounting and financial
reporting for state or local governments that extend and receive nonexchange financial guarantees. This
statement is effective for the fiscal year ending June 30, 2014. The Authority has determined that this
statement is not applicable.
Future Governmental Accounting Standards Board (GASB) Pronouncements
GASB Statement No. 68 – In June 2012, GASB issued Statement No. 68, Accounting and Financial
Reporting for Pensions – an amendment of GASB Statement No. 27. This statement is to improve
accounting and financial reporting by state and local governments for pensions. This statement is
effective for the fiscal year ending June 30, 2015. The Authority has determined that this statement is not
applicable.
GASB Statement No. 69 – In January 2013, GASB issued Statement No. 69, Government Combinations
and Disposals of Government Operations. This statement establishes accounting and financial reporting
standards related to government combinations and disposals of government operations. This statement is
effective for the fiscal year ending June 30, 2015. The Authority has determined that this statement is not
applicable.
GASB Statement No. 71 – In November 2013, GASB issued Statement No. 71, Pension Transition for
Contributions made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68.
This statement requires that, at transition, a government recognizes a beginning deferred outflow of
resources for its pension contributions made subsequent to the measurement date of the beginning net
pension liability. This statement is effective simultaneously with the provisions of Statement 68. The
Authority has determined that this statement is not applicable.
15
40
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 3 – CASH AND INVESTMENTS
Cash and investments as of June 30 2014 and 2013 are classified in the accompanying financial
statements as follows:
Cash and investments in Treasury Pool
Restricted cash and investments in Treasury Pool
Petty cash
2014
2013
$ 25,402,949
11,525,044
9,400
$ 36,937,393
$ 21,255,231
11,310,854
9,400
$ 32,575,485
Investments
The Placer County Treasurer pools all funds that it manages, and on a monthly basis allocates investment
earnings and expenses based upon average daily cash balances. The County is restricted by California
Government Code in the types of investments it can purchase. Further, the County Treasurer has a
written investment policy which is approved by the County Board of Supervisors, and has been adopted
by the Authority. The County’s investment policy is more restrictive than California Government Code
as to terms of maturity and type of allowable investments. The Treasury Pool is not SEC registered, but
is invested in accordance with California Government Code section 53600 et. seq. The County’s
Treasury Review Panel, performs regulatory oversight of the Treasury Pool pursuant to California
Government Code Section 27134. As of June 30, 2014 and 2013, the Authority has reported its
investment in the Treasury Pool at estimated fair value. However, the value of the pool shares in the
County which may be withdrawn is determined on an amortized cost basis, which is different than the fair
value of the Authority’s position in the pool.
16
41
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Authorized Investments
The table below identifies the investment types that are authorized by California Government Code
Section 53601 and the County’s investment policy.
Authorized Investment Type
U.S. Treasury securities
U.S. Agency securities
Local agency obligations
Bankers' acceptances
Commercial paper
Negotiable certificates of deposit
Repurchase agreements
Corporate notes
Collateralized certificates of deposit
Local Agency Investment Fund
CDARS certificates of deposit
Maximum
Maturity
(per Code/per policy)
5 years
5 years
5 years
180 days
270 days
5 years
1 year/7 days
5 years
not specified/5 years
not specified/1 year
not specified/5 years
Percentage
of Portfolio
(per Code/per policy)
100%
100%/75%
100%
40%/30%
40%
30%
25%/20%
30%
20%
N/A
30%
Investment
in One
Issuer
--10%
10%
10%
10%
10%
10%
10%
---
Minimum
Rating
----A / P1
--A
----
Other allowable investments pursuant to California Government Code Section 53601, although restricted
by the County’s investment policy, includes the following: mutual funds, mortgage and collateral-backed
securities, asset-backed securities and reverse repurchase agreements.
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value
is to changes in market interest rates. The weighted average to maturity of the County’s external
investment pool as of June 30, 2014 and 2013 was 1,632 days and 1,688 days, respectively.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. The credit rating and other information regarding specific investments maintained in
the Treasury Pool as of June 30, 2014 and 2013 are disclosed in the County’s Comprehensive Annual
Financial Report. The Authority’s investment in the County external investment pool is not rated.
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counterparty to a transaction, the
Authority will not be able to recover the value of its investment or collateral securities that are in the
possession of an outside party.
17
42
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk (Continued)
Required disclosure information regarding the categorization of investments and other deposit and
investment risk disclosures can be found in the County’s Comprehensive Annual Financial Report which
may be obtained by contacting the County Auditor-Controller’s Office at 2970 Richardson Drive,
Auburn, California 95603.
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2014 was as follows:
Balance
July 1, 2013
Capital assets, not being depreciated
Land
Total capital assets not depreciated
Capital assets, being depreciated
Land improvements
Building and improvements
Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Land improvements
Building and improvements
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Total capital assets, net
$ 13,024,848
13,024,848
2,099,166
57,959,949
416,835
60,475,950
Additions
and Transfers
$
-
Retirements
and Transfers
$
42
124,729
124,771
-
Balance
June 30, 2014
$
13,024,848
13,024,848
-
2,099,208
57,959,949
541,564
60,600,721
(104,958)
(28,178,184)
(107,886)
(28,391,028)
(104,958)
(2,583,299)
(36,090)
(2,724,347)
-
(209,916)
(30,761,483)
(143,976)
(31,115,375)
32,084,922
(2,599,576)
-
29,485,346
$ 45,109,770
$ (2,599,576)
18
43
$
-
$
42,510,194
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 4 – CAPITAL ASSETS (CONTINUED)
Capital asset activity for the fiscal year ended June 30, 2013 was as follows:
Balance
July 1, 2012
Capital assets, not being depreciated
Land
Construction in progress
Total capital assets not depreciated
$
Capital assets, being depreciated
Land improvements
Building and improvements
Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Land improvements
Building and improvements
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Total capital assets, net
13,024,848
2,099,166
15,124,014
Additions
and Transfers
$
$
(2,099,166)
(2,099,166)
Balance
June 30, 2013
$
13,024,848
13,024,848
57,959,949
200,866
58,160,815
2,099,166
222,236
2,321,402
(6,267)
(6,267)
2,099,166
57,959,949
416,835
60,475,950
(25,591,551)
(98,350)
(25,689,901)
(104,958)
(2,586,633)
(15,803)
(2,707,394)
6,267
6,267
(104,958)
(28,178,184)
(107,886)
(28,391,028)
(385,992)
-
32,084,922
32,470,914
$
-
Retirements
and Transfers
47,594,928
$
(385,992)
$ (2,099,166)
$
45,109,770
NOTE 5 – NOTE RECEIVABLE
On September 9, 2010 the Authority entered into a secured non-negotiable promissory note with Nortech
Waste LLC for a not to exceed amount of $6,800,000. This amount was contingent upon Nortech
installing a glass processing line at the MRF. If Nortech did not install the contingent improvement, the
outstanding balance of this note shall not exceed the aggregate sum of $5,500,000.
During the fiscal year ended June 30, 2012, Nortech installed the contingent improvement and was
advanced the remaining amounts for a total of $6,800,000. Furthermore, on December 1, 2011 the
promissory note was converted to a term loan ending on June 30, 2020 with an interest rate of 5%. As of
June 30, 2014 and June 30, 2013, the total amount owed to the Authority was $4,989,819 and $5,697,009
respectively.
18
44
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 6 – CLOSURE AND POSTCLOSURE CARE COSTS
The Authority accounts for solid waste landfill closure and postclosure costs based on the provisions of
GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care
Costs. This statement is based on state and federal laws and regulations that place specific requirements
on the Authority regarding closure and postclosure maintenance and monitoring functions for the
Authority’s landfill. These postclosure functions are required for 30 years after closure of the landfill site.
The $10,641,323 and $10,205,702 reported as landfill closure and postclosure care liability as of
June 30, 2014 and 2013, respectively, represent the cumulative amount reported to date based on the use
of approximately 30.16 percent and 29.36 percent, respectively, of the estimated capacity of the landfill.
The Authority will recognize the remaining estimated cost of closure and postclosure care of $24,640,376
and $24,554,593 at June 30, 2014 and 2013, respectively, as the remaining estimated capacity is filled.
The Authority currently estimates the landfill will reach capacity in fiscal year 2058.
During the fiscal year ended June 30, 2014, the volume available remains at 36,350,000 yards. As of
June 30, 2014, total estimated costs for closure and postclosure increased from $34,760,295 at
June 30, 2013 to $35,281,699 and the remaining capacity of the landfill decreased from approximately
70.64 percent to approximately 69.84 percent at June 30, 2013 and 2014, respectively. These changes
resulted in an adjustment to the landfill closure and postclosure care liability of $435,621 and $2,222,581
for the fiscal years ended June 30, 2014 and 2013, respectively.
Future closure and postclosure costs are based on what it would cost to perform all closure and postclosure care in 2014. Actual costs may be higher due to inflation, changes in technology, changes in
permitted capacity and/or changes in regulations. The Authority is required by state and federal laws and
regulations to provide financial assurance that appropriate resources will be available to finance closure
and postclosure care costs in the future. The Authority was recently required to revise its landfill closure
and postclosure cost estimates to comply with changes in the state regulations. These regulatory changes
included utilizing more conservative labor rates and larger project contingencies. As a consequence of
revising the cost estimates, the Authority’s liability for closure and postclosure activities increased $2.22
million in the fiscal year ended June 30, 2013. The magnitude of this increase is a one-time anomaly and
future annual contributions are anticipated to be consistent with historical contribution amounts.
Management has accumulated sufficient assets to finance closure and postclosure costs as required by
applicable laws as of June 30, 2014. The Board of Directors established a closure and postclosure fund
reserve in accordance with Resolution No. 92-4 to provide financial assurance for the closure and
postclosure maintenance costs. Management expects that any change to future closure and postclosure
costs (due to changes in technology or applicable laws or regulations, for example) will be paid from
charges to future users. As of June 30, 2014 and 2013, assets set-aside of $11,525,044 and $11,310,854,
respectively, have been restricted to provide the final cover and postclosure maintenance upon closure of
the landfill in accordance with the requirements of Title 14, California Code of Regulations (CCR),
Division 7, Chapter 5, Article 3.5, Section 18282.
As the owner and operator of a landfill site, the Authority has potential exposure to environmental
liability. The Authority may be required to perform corrective action for contaminate releases at its
landfill. The Authority is continually evaluating its potential exposure to remediation liabilities on its
landfill site. On the basis of information currently available to management, the Authority’s management
believes it has sufficient reserves for known and anticipated remediation costs. At June 30, 2014 and
2013, $862,780 and $850,030, respectively, has been accrued for corrective action costs and is included in
the total closure and postclosure liability.
19
45
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 7 – RISK MANAGEMENT – CLAIMS AND JUDGMENTS
The Authority is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; pollution; and natural disasters.
The Authority purchases commercial insurance for the MRF building and MRF equipment for claims in
excess of a $10,000 deductible per the statement of values on file with Alliant. The Authority also
purchases general liability and pollution liability coverage. As of June 30, 2014 and 2013, the general
liability and pollution liability coverage amount was $2,000,000 on occurrence basis and claims made
basis, respectively, with deductible amounts of $5,000 and $25,000, respectively.
The Authority has had no settlement amounts exceeding insurance coverage for the last three years.
NOTE 8 – CONCENTRATION OF VOLUME OF BUSINESS
Recology Auburn Placer (formerly Auburn Placer Disposal) and the City of Roseville are the major
customers of the landfill and constitute approximately 73% and 74% of the accounts receivable balance
and 39.67% and 33.50% of total fees from landfill operations as of June 30, 2014 and 2013, respectively.
Since the Authority has previously entered into separate flow control agreements with many of the
participating agencies, there is little risk of these customers (which represent the majority of the
Authority’s revenues) from ceasing delivery of their wastes to the Authority’s facility.
NOTE 9 – RELATED PARTY TRANSACTIONS
The Authority utilizes employees of the County and uses other County departments for other services,
such as risk management, engineering, accounting, etc. Expenses paid to the County during the fiscal
years ended June 30, 2014 and 2013 were $2,390,872 and $2,344,284, respectively.
NOTE 10 – CONTINGENCIES
The Authority is involved in various legal proceedings from time to time in the normal course of
business. In management’s opinion, the Authority is not involved in any legal proceeding that will have a
material adverse effect on financial position or changes in financial position of the Authority.
20
46
Vavrinek, Trine, Day & Co., LLP
VA L U E T H E D I F F E R E N C E
Certified Public Accountants
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Directors
Western Placer Waste Management Authority
Auburn, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the Western Placer Waste Management
Authority (the Authority) as of and for the year ended June 30, 2014, and the related notes to the financial
statements, and have issued our report thereon dated December 1, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the Authority’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
21
2151 River Plaza Drive, Suite 308 Sacramento, CA 95833 Tel: 916.570.1880 Fax: 916.570.1875 www.vtdcpa.com
FRESNO
•
L AGUN A HILLS
•
PA L O A L T O
•
PLEASANTON
•
47
RAN C HO CUC AMON GA
•
RIVERSIDE
•
SAC R A M E N TO
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of
our tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose
Sacramento, California
December 1, 2014
22
48
STATISTICAL SECTION
This part of the Authority’s Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, notes disclosures, and required
supplementary information says about the Authority’s overall financial health.
CONTENTS
Financial Trends
Pages
These schedules contain information to help the reader understand how the Authority’s
financial performance and well-being have changed over time.
24-26
Revenue Capacity
These schedules contain information to help the reader assess the Authority’s most
26-32
significant local revenue source.
Demographic and Economic Information
These schedules contain demographic and economic indicators to help the reader understand
the environment within which the Authority’s financial activities take place and help to make
comparisons over time.
31-35
Operating Information
These schedules contain information about the Authority’s operation and resources to help the
reader understand how the Authority’s financial information relates to the services it provides
and the activities it performs.
Sources:
Unless otherwise noted, the information in these schedules is derived from the Comprehensive
Annual Financial Reports for the relevant year.
23
49
36-38
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NET POSITION BY COMPONENT
Fiscal Years 2004-05 through 2013-14
2004-05
Investment in capital assets
Restricted
Unrestricted
Total net position
2005-06
2006-07
2007-08
$
19,076,067
8,523,526
17,684,583
$
21,352,621
9,009,507
24,497,248
$
42,054,529
9,605,031
10,727,247
$
46,381,885
10,427,134
9,233,596
$
45,284,176
$
54,859,376
$
62,386,807
$
66,042,615
Source: Audited Financial Statements for Fiscal Years 2004-05 through 2013-14
24
50
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
NET POSITION BY COMPONENT
Fiscal Years 2004-05 through 2013-14
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
$
45,261,137
10,631,218
13,692,764
$
42,670,576
10,974,915
17,956,108
$
40,070,723
11,133,002
23,468,064
$
47,594,928
11,274,020
16,075,361
$
45,109,770
11,310,854
16,944,640
$
42,510,194
11,525,044
18,967,793
$
69,585,119
$
71,601,599
$
74,671,789
$
74,944,309
$
73,365,264
$
73,003,031
Source: Audited Financial Statements for Fiscal Years 2004-05 through 2013-14
25
51
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TOTAL ANNUAL REVENUES
Fiscal Years 2004-05 through 2013-14
2004-05
OPERATING REVENUES:
Fees from landfill operations
Rental income
Miscellaneous income
$
Total operating revenues
22,676,708
65,843
20,880
24,423,551
60,896
28,868
$
23,698,177
66,693
22,601
2007-08
$
22,420,727
73,661
14,418
24,513,315
23,787,471
22,508,806
69,786
862,778
-
67,177
1,285,895
-
46,954
2,309,556
518
1,206,076
-
932,564
1,353,072
2,357,028
1,206,076
Total nonoperating revenues
$
$
2006-07
22,763,431
NONOPERATING REVENUES:
Grant revenue
Investment earnings
State aid
TOTAL REVENUES
2005-06
23,695,995
Source: Audited Financial Statements for Fiscal Years 2004-05 through 2013-14
26
52
$
25,866,387
$
26,144,499
$
23,714,882
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TOTAL ANNUAL REVENUES
Fiscal Years 2004-05 through 2013-14
2008-09
$
$
20,216,998
84,022
12,205
2009-10
$
19,872,062
89,277
9,277
2010-11
$
2011-12
20,013,373
80,059
139,557
$
19,756,721
101,630
339,231
2012-13
$
20,317,631
102,935
334,882
2013-14
$
20,423,095
130,691
120,851
20,313,225
19,970,616
20,232,989
20,197,582
20,755,448
20,674,637
84,451
1,004,699
-
116,935
1,107,360
-
190,683
661,534
-
145,635
645,123
-
123,333
382,588
-
70,680
901,928
-
1,089,150
1,224,295
852,217
790,758
505,921
972,608
21,402,375
$
21,194,911
$
21,085,206
$
Source: Audited Financial Statements for Fiscal Years 2004-05 through 2013-14
27
53
20,988,340
$
21,261,369
$
21,647,245
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TOTAL ANNUAL EXPENSES
Fiscal Years 2004-05 through 2013-14
2004-05
OPERATING EXPENSES:
Solid waste contractor
Depreciation
Professional services - county
Landfill closure and postclosure care costs
Claims/litigation
Professional services - purchased
Special department expenses
Administration
General liability insurance
Utilities
Communications
Maintenance - buildings and improvements
Maintenance - other
Travel and transportation
Publications and legal notices
Supplies
Rents and leases
Postage
Commissioners' fees
Maintenance - equipment and computers
Uniforms
Special training expense
Dues, subscriptions, and memberships
Gate operations cash shortage
Bad debts
$
Total operating expenses
10,997,112
1,702,603
1,393,402
355,517
874,179
460,382
101,851
119,858
33,932
23,527
1,574
12,769
19,183
6,791
9,431
2,506
2,300
5,529
1,030
705
602
(172)
38
2005-06
$
10,929,773
1,462,279
1,695,855
431,661
827,293
498,787
105,663
82,672
48,316
28,265
2,032
17,382
19,300
17,822
10,839
2,548
2,200
1,176
1,038
429
195
333
146
2006-07
$
2007-08
13,753,296
931,765
1,596,265
441,208
623,417
459,006
105,746
123,720
43,507
33,315
993
13,303
1,328
9,033
2,413
1,800
949
956
689
233
90
17,871
$
16,124,649
16,186,004
NONOPERATING EXPENSES:
Interest expense
Loss on disposal of capital assets
Unrealized loss on investment
29,310
174
192,318
105,183
-
116,685
-
Total nonoperating expenses
221,802
105,183
-
116,685
TOTAL EXPENSES
$
16,346,451
Source: Audited Financial Statements for Fiscal Years 2004-05 through 2013-14
28
54
$
16,291,187
18,160,903
15,062,783
873,662
2,328,534
782,276
650,473
412,648
141,094
62,136
27,495
29,268
1,435
10,959
2,236
8,783
875
2,157
1,900
1,514
621
1,000
324
83
(3,702)
$
18,160,903
20,398,554
$
20,515,239
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TOTAL ANNUAL EXPENSES
Fiscal Years 2004-05 through 2013-14
2008-09
$
2009-10
12,187,620
1,120,854
2,138,740
546,088
213,152
904,359
384,037
191,435
82,479
29,838
25,328
902
11,035
5,819
8,999
2,406
2,200
952
1,614
564
201
93
1,156
$
17,859,871
$
2010-11
12,813,591
2,598,761
2,037,968
339,015
618,253
395,427
182,928
90,286
43,645
28,363
619
11,205
3,668
6,535
600
2,283
1,800
392
945
1,060
326
761
-
$
19,178,431
2011-12
12,186,572
2,599,853
2,181,374
(448,907)
660,485
427,636
179,302
86,867
66,798
26,645
12,338
10,148
9,081
7,709
600
2,684
2,900
557
882
965
211
316
-
$
18,015,016
2012-13
13,515,891
2,599,854
2,412,463
379,246
938,153
440,913
198,968
89,021
61,813
26,944
17,985
12,183
9,096
4,170
400
3,689
1,700
1,267
1,138
529
213
184
-
$
20,715,820
2013-14
13,846,375
2,707,394
2,344,284
2,222,581
786,218
438,300
234,323
99,112
68,970
27,216
21,231
12,021
8,812
6,674
6,589
3,580
2,000
1,865
1,580
450
408
431
-
$
22,840,414
14,661,786
2,724,347
2,390,872
435,621
808,780
486,813
211,344
108,708
82,091
23,880
35,446
12,806
5,844
11,314
3,714
2,200
806
1,769
784
393
160
22,009,478
-
-
-
-
-
-
-
-
-
-
-
-
17,859,871
$
19,178,431
$
18,015,016
$
Source: Audited Financial Statements for Fiscal Years 2004-05 through 2013-14
29
55
20,715,820
$
22,840,414
$
22,009,478
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
CHANGES IN NET POSITION
Fiscal Years 2004-05 through 2013-14
2004-05
Operating Revenues:
Fees from landfill operations
Rental income
Miscellaneous income
$
Total operating revenues
22,676,708
65,843
20,880
2005-06
$
24,423,551
60,896
28,868
2006-07
$
2007-08
23,698,177
66,693
22,601
$
22,420,727
73,661
14,418
22,763,431
24,513,315
23,787,471
22,508,806
69,786
862,778
-
67,177
1,285,895
-
46,954
2,309,556
518
1,206,076
-
932,564
1,353,072
2,357,028
1,206,076
23,695,995
25,866,387
26,144,499
23,714,882
16,124,649
16,186,004
18,160,903
20,398,554
984,158
105,183
Total expenses
17,108,807
16,291,187
18,160,903
20,515,239
Change in net position
6,587,188
9,575,200
7,983,596
3,199,643
38,696,988
45,284,176
54,859,376
62,842,972
Nonoperating Revenues:
Grant revenue
Investment earnings
State aid
Total nonoperating revenues
Total revenues
Operating Expenses:
Nonoperating Expenses:
Net position, beginning of year
Net position, end of year
$
45,284,176
Source: Audited Financial Statements for Fiscal Years 2004-05 through 2013-14
30
56
$
54,859,376
-
$
62,842,972
116,685
$
66,042,615
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
CHANGES IN NET POSITION
Fiscal Years 2004-05 through 2013-14
2008-09
$
2009-10
20,216,998
84,022
12,205
$
19,872,062
89,277
9,277
$
2011-12
20,013,373
80,059
139,557
$
2012-13
19,756,721
101,630
339,231
$
2013-14
20,317,631
102,935
334,882
$
20,423,095
130,691
120,851
20,313,225
19,970,616
20,232,989
20,197,582
20,755,448
20,674,637
84,451
1,004,699
-
116,935
1,107,360
-
190,683
661,534
-
145,635
645,123
-
123,333
382,588
-
70,680
901,928
-
1,089,150
1,224,295
852,217
790,758
505,921
972,608
21,402,375
21,194,911
21,085,206
20,988,340
21,261,369
21,647,245
17,859,871
19,178,431
18,015,016
20,715,820
22,840,414
22,009,478
-
$
2010-11
-
-
-
17,859,871
19,178,431
18,015,016
20,715,820
3,542,504
2,016,480
3,070,190
272,520
66,042,615
69,585,119
71,601,599
74,671,789
69,585,119
$
71,601,599
$
$
74,671,789
Source: Audited Financial Statements for Fiscal Years 2004-05 through 2013-14
31
57
74,944,309
-
-
22,840,414
22,009,478
(1,579,045)
(362,233)
74,944,309
$
73,365,264
73,365,264
$
73,003,031
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
SCHEDULE OF CURRENT TIPPING FEES
Fiscal Year 2013-14
Tipping
Fees
Category
Municipal Solid Waste
$68.00/ton
$12.00/cy
Construction and Demolition Debris
$46.00/ton
$12.00/cy
Sludge and Mixed Inerts1
Commercial Food Waste
Source Separated Green Waste
$31.50/ton
$38.00/ton
$35.00/ton
$6.00/cy
Source Separated Wood Waste
2
$25.00/ton
$6.00/cy
Inert Materials3
$15.00/ton
$12.00/cy
Water Treatment Plant Sludge
Refrigerated Appliances
Non-refrigerated Appliances
Car and Light Truck Tires
Semi-trailer Tires
Tractor Tires
Euclid & Bulk Tires
$5.00/ton
$27.00 each
$4.00 each
$2.50 each
$15.00 each
$60.00 each
$150.00/ton
1 Applies to loads that qualify as Inert Materials but contain the presence of a small amount of contaminants.
2 Applies to separated loads of wood, including: lumber, plywood, particleboard, and tree trunks and limbs less
than 24 inches in diameter and greater than 1 inch in diameter. Loads can contain no more than 1% of
contaminants. Contaminants include treated or painted wood.
3 Applies to separated loads of dirt, rock, asphalt and concrete if free from rebar or mesh and broken into
pieces less than 2' x 2' x 4'.
Source: Western Placer Waste Management Authority
32
58
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TEN LARGEST PRINCIPAL CUSTOMERS
As of June 30, 2014 and June 30, 2005
June 30, 2014
Recology
City of Roseville
Cash Customer
City of Lincoln
Atlas Disposal Industries
Inviro Tec
Placer County - Utilities
Allied Waste Services
Caltrans D-3
Operations Management Intl
Two Rivers Demolition Inc.
GR Grading & Excavation, Inc.
Ten Largest Principal Customers
All Other Customers
Total
June 30, 2005
Tipping
Fees
% of Total
Tipping Fee
Revenue
Tipping
Fees
% of Total
Tipping Fee
Revenue
$ 8,101,896
6,842,009
2,698,952
1,597,890
215,193
104,665
61,763
47,086
44,616
44,435
-
39.67%
33.50%
13.22%
7.83%
1.05%
0.51%
0.30%
0.23%
0.22%
0.22%
-
$ 10,144,419
7,820,744
2,227,952
1,186,535
59,977
78,089
22,029
69,811
159,202
90,850
44.74%
34.49%
9.83%
5.23%
0.26%
0.34%
0.10%
0.31%
0.70%
0.40%
$ 19,758,505
96.75%
$ 21,859,608
96.40%
664,590
$ 20,423,095
Source: Western Placer Waste Management Authority
33
59
3.25%
100.00%
817,100
$ 22,676,708
3.6%
100.00%
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
DEMOGRAPHIC AND ECONOMIC STATISTICS
Calendar Years 2005 through 2014
(Dollars in Thousands)
Calendar
Year
Per Capita
Personal
Income
(3)
Personal
Income
(2)
Population
(in thousands)
(1)
$
14,027,192
$
School
Enrollment
(4)
Unemployment
Rate
(5)
2005
308
45
62,666
4.3%
2006
317
15,234,777
47
63,742
4.2%
2007
324
15,955,562
48
64,401
4.8%
2008
333
16,670,183
49
65,708
6.4%
2009
339
16,085,139
47
67,088
10.4%
2010
347
16,725,085
48
67,966
11.4%
2011
352
17,932,119
50
68,278
10.7%
2012
355
53
68,813
9.3%
2013
357
Data not available
19,004,105
Data not available
69,831
7.6%
2014
366
Data not available
Data not available
70,141
**6%
Sources:
(1) State Department of Finance, population estimates at January 1
(2) & (3) U.S. Department of Commerce; Bureau of Economic Analysis
(4) California Department of Education (Dataquest), K-12 Public School Enrollment for Placer County
(5) California State Employment Development Department (annual averages, not seasonally adjusted)
Note:
** Unemployment rate as of June 2014
34
60
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TEN LARGEST EMPLOYERS
As of June 30, 2014 and June 30, 2005
June 30, 2014
Company or Organization
Sutter Health
Kaiser Permanente
Squaw Valley Resort
Thunder Valley Casino Resort
Placer County
Hewlett-Packard Co.
City of Roseville
Pride Industries
Roseville City School District
State of California
June 30, 2005
Placer
County
Employees
Percentage
of Total
Employment
3,890
3,826
2,500
2,391
2,300
2,230
1,254
1,164
1,006
940
2.31%
2.27%
1.48%
1.42%
1.36%
1.32%
0.74%
0.69%
0.60%
0.56%
Company or Organization
Hewlett-Packard Co.
Placer County
Kaiser Permanente
Sutter Health
Squaw Valley Ski Corp.
Raley's Inc.
City of Roseville
Union Pacific Railroad Co., Inc.
Pride Industries
Rocklin Unified School District
Sources:
Sacramento Business Journal
California State, Employment Development Department (total employment as of June 2014, not seasonally adjusted)
Note: Ranked by number of employees in full-time equivalents as published on June 6, 2014
35
61
Number of
Employees
Percentage
of Total
Employment
4,000
3,000
1,847
1,319
1,300
1,135
1,132
1,062
1,060
848
2.47%
1.85%
1.14%
0.81%
0.80%
0.70%
0.70%
0.66%
0.65%
0.52%
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
OPERATING INDICATORS
Fiscal Years 2004-05 through 2013-14
Fiscal
Year
Tonnage Disposed at
Western Regional
Sanitary Landfill
Percentage of
Diversion
Recycled Waste
2004-05
259,073
36%
2005-06
282,633
40%
2006-07
266,262
40%
2007-08
239,133
43%
2008-09
220,587
43%
2009-10
205,706
44%
2010-11
207,159
43%
2011-12
198,499
45%
2012-13
211,417
43%
2013-14
216,266
42%
Source: Western Placer Waste Management Authority
36
62
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
SCHEDULE OF ANNUAL REFUSE TONNAGE
Fiscal Years 2004-05 through 2013-14
Delivered by
Recology
City of
Roseville
City of
Lincoln
Other
Entities
Total
Tonnage
Annual %
Increase
(Decrease)
2004-05
167,112
137,929
18,627
83,153
406,821
3.48%
2005-06
174,134
140,987
21,799
131,050
467,970
15.03%
2006-07
168,646
131,687
24,085
121,808
446,226
-4.65%
2007-08
160,641
125,055
24,997
105,900
416,593
-6.64%
2008-09
145,236
120,134
25,331
94,620
385,321
-7.51%
2009-10
140,666
117,430
25,231
85,438
368,765
-4.30%
2010-11
139,499
120,433
25,385
80,165
365,482
-0.89%
2011-12
138,195
118,103
25,414
81,056
362,768
-0.74%
2012-13
140,914
121,390
26,522
83,358
372,184
2.60%
2013-14
142,117
119,435
26,331
83,391
371,274
-0.24%
Fiscal
Year
Source: Western Placer Waste Management Authority
37
63
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
CUSTOMER ACCOUNTS
Fiscal Years 2004-05 through 2013-14
Fiscal
Year
Number of
Customer Accounts
Annual %
Increase
(Decrease)
2004-05
290
18%
2005-06
323
11%
2006-07
349
8%
2007-08
350
0%
2008-09
336
-4%
2009-10
313
-7%
2010-11
294
-6%
2011-12
278
-5%
2012-13
269
-3%
2013-14
275
2%
Source: Western Placer Waste Management Authority
38
64
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
Minutes of December 11, 2014
The meeting of the Western Placer Waste Management Authority Board of Directors
was called to order at 6:02 PM by Chairman Rohan in the WPWMA Administration
Building at the Materials Recovery Facility.
Directors Present:
Staff Present:
Susan Rohan
George Magnuson
Robert Weygandt
Mary Dietrich
Valerie Bayne
Robert Sandman
Eric Oddo
Keith Schmidt
Stephanie Ulmer
Chris Hanson
Heather Wilden
1.
Call Meeting to Order: Director Rohan called the meeting to order at 6:02 PM.
2.
Pledge of Allegiance: Director Magnuson led the Pledge of Allegiance.
3.
Roll Call: Director Duran and Director Joiner were absent.
4.
Statement of Meeting Procedures: Heather Wilden read the Statement of Meeting
Procedures into the record.
5.
Agenda Approval: No changes were made to the agenda.
MOTION TO APPROVE THE AGENDA:
Weygandt/Magnuson
Vote: Unanimous
6.
Correspondence: There was no late arriving correspondence.
7.
Consent Agenda:
a.
Minutes of the Board Meeting held October 16, 2014
Staff recommended the Board approve the minutes as submitted.
b.
Support of the California Product Stewardship Council
Staff recommended the Board authorize payment of $1,500 to the California
Product Stewardship Council.
c.
First Amendment to the Agreement with Golder Associates for Module 5
Design and CQA Services
Staff recommended the Board authorize the Chair to sign the First
Amendment to the Module 5 Base Liner Design and Construction Quality
Assurance Agreement with Golder Associates, Inc. to provide construction
quality assurance services for the Module 15/16 Partial Final Cover at a cost
not to exceed $118,323.
MOTION TO APPROVE THE CONSENT AGENDA:
Magnuson/Weygandt
Vote: Unanimous
8.
Announcements & Information
a.
Reports from Directors: There were no reports from Directors.
65
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
MEETING MINUTES OF DECEMBER 11, 2014
PAGE 2
b.
Report from the Executive Director: Mary Dietrich apprised the Board that
staff had received notification from Placer County’s Community Development
Resource Agency (CDRA) that Westpark Communities intends to issue a
Notice of Preparation for their proposed Placer Ranch project on
December 19, 2014. Mary indicated that staff would review the document
and respond accordingly.
Mary reported that she intends to authorize Nortech to proceed with a pilot
study to evaluate the effectiveness of reducing odors at the landfill by
applying an odor neutralizer to residual wastes generated at the MRF prior to
their disposal at the landfill. The cost of the proposed project is $25,090.
Mary noted that in October, Chris Hanson received special recognition from
the Solid Waste Association of North America’s Gold Rush Chapter for her
contributions to SWANA’s Legislative Task Force. Ms. Hanson has
represented the chapter since 2006 and was recognized for her outstanding
service and dedication to the solid waste industry.
9.
c.
Sunset Industrial Area Plan Update: Mary Dietrich introduced Michael
Johnson, Director of Placer County CDRA. Mr. Johnson noted that CDRA
was directed by the Placer County Board of Supervisors to update the
Sunset Industrial Area Plan that was last updated in 1997. Mr. Johnson
provided an overview of the upcoming efforts to update the plan and
answered questions from the Board.
d.
Monthly Financial Reports: Valerie Bayne summarized the financial reports.
Valerie Bayne and Eric Oddo answered questions from the Board.
e.
Monthly Tonnage Reports: Keith Schmidt summarized the tonnage reports.
There were no questions from the Board.
f.
Quarterly MRF Operator’s Report: There were no questions from the Board.
g.
Quarterly Landfill Operator’s Report: There were no questions from the
Board.
h.
Quarterly WPWMA Engineer’s Report: Keith Schmidt summarized the report.
There were no questions from the Board.
i.
2014 Auburn HHW Collection Event Summary: Stephanie Ulmer summarized
the report and answered questions from the Board.
j.
Legislative Update: Chris Hanson introduced Karen Lange and Jason
Schmelzer from Shaw/Yoder/Antwih Inc. Ms. Lange and Mr. Schmelzer
provided a summary of select pieces of legislation that were considered
during the 2014 Legislative Session and that were of interest to the WPWMA.
Following their presentation they answered questions from the Board.
Action Items:
a.
Sixth Amendment to the Lease Agreement with Energy 2001
Staff recommended that the Board authorize the Chair to sign the Sixth
Amendment to the Lease Agreement with Energy 2001 that extends the
66
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
MEETING MINUTES OF DECEMBER 11, 2014
PAGE 3
term of the lease by one year and allows Energy 2001 to partner with Sierra
College to install a solar array at the Western Regional Sanitary Landfill.
Eric Oddo summarized the report. The Board requested that staff provide
periodic updates about Energy 2001’s performance. Eric indicated that staff
will include additional information in the Quarterly Engineer’s report and will
also provide an annual recap of Energy 2001’s performance, similar to what
staff provides the Board regarding Nortech’s performance in operating the
MRF and landfill.
MOTION TO APPROVE ITEM 9a:
Magnuson/Weygandt
Vote: Unanimous
10.
Upcoming Agenda Items: None.
11.
Adjournment: Meeting was adjourned at 7:10 PM.
Respectfully Submitted,
________________________
Heather Wilden, Clerk of the Board
Western Placer Waste Management Authority
67
PAGE INTENTIONALLY LEFT BLANK
68
MEMORANDUM
WESTERN PLACER WASTE MANAGEMENT AUTHORITY
TO:
WPWMA BOARD OF DIRECTORS
DATE: JANUARY 8, 2015
FROM:
MARY DIETRICH / ERIC ODDO
SUBJECT:
AGREEMENT TO PREPARE A LANDFILL GAS STRATEGIC PLAN
RECOMMENDED ACTION:
Authorize the Chair to sign an agreement with Capitol Public Finance Group (CPFG) to
develop a landfill gas (LFG) strategic plan for an amount not to exceed $169,211.
BACKGROUND:
At the February 13, 2014 meeting, your Board directed staff to develop a Request for
Proposals and conduct a competitive procurement process for the purposes of hiring a
firm to prepare an LFG Strategic Plan for the WPWMA.
In August 2014, the Placer County Procurement Services Division (Procurement), on
behalf of the WPWMA, solicited proposals from qualified consulting firms, groups or
individuals for the purposes of developing the strategic plan. In conjunction with
Procurement, the Executive Director approved a four-person evaluation committee
comprised of staff from the WPWMA, the City of Roseville, the City of Rocklin and the
County of Placer to review and rank the subsequent proposals.
On September 12, 2014, Procurement received a total of three proposals; the proposals
were reviewed by the evaluation committee and ranked based on experience and
qualifications of both the firm and proposed staff as well their demonstrated
understanding of the project and WPWMA’s needs. Following this initial ranking, the
two top-ranked firms were invited by Procurement to participate in interviews with the
evaluation committee.
Based on their proposal and subsequent interview, CPFG was unanimously determined
by the members of the evaluation committee to be the best qualified firm to provide the
requested services to the WPWMA. CPFG’s proposal demonstrated an in-depth
understanding of the technical, economic and regulatory factors that may influence the
determination of the best and highest uses of the WPWMA’s LFG asset and provided
the most comprehensive approach to achieving the WPWMA’s goals for developing the
strategic plan.
ENVIRONMENTAL CLEARANCE:
Development of an LFG strategic plan is statutorily exempt from further environmental
review pursuant to Section 15329, “Feasibility and Planning Studies”, of the California
Environmental Quality Act which actions involving only feasibility or planning studies for
possible future actions which the agency has not approved, adopted or funded.
FISCAL IMPACT:
The cost of providing services included in the attached Scope of Services is $169,211.
This is an anticipated expense and is included in Account 2555 “Professional Services”
of the FY 2014/15 Budget.
ATTACHMENT:
SCOPE OF SERVICES
MD:EO
69
EXHIBIT A-1
SCOPE OF SERVICES
The following Scope of Services represents the efforts required of Consultant for the
purposes of developing a strategic plan for the future use of the WPWMA’s landfill gas
(LFG) asset. The resulting plan is intended to provide the WPWMA with a tool to insure
it is able to implement a viable system to maximize the value of its LFG asset while
continuing to meet all applicable regulatory and legal operating requirements. For the
purposes of this project, Consultant should assume the current obligation of the
WPWMA to provide LFG to Energy 2001 for the generation and sale of electricity will
expire in April 2018.
The following Scope of Services identifies the work that shall be performed by
Consultant in preparing the strategic plan. Furthermore, the WPWMA expects that
Consultant’s efforts will provide sufficient information for the WPWMA to make a
reasoned and informed policy decision related to the future use of its LFG asset.
TASK 1 – PROJECT INITIATION AND ENGAGEMENT OF STAKEHOLDERS
The WPWMA acknowledges that the development of a successful and useful LFG
strategic plan will require active engagement of staff from the WPWMA’s Member
Agencies (i.e. the cities of Rocklin, Roseville and Lincoln and the County of Placer) and
consultation with other stakeholders. For the purposes of this task, the stakeholders
include, but are not necessarily limited to: 1) the Member Agencies, 2) Nortech Waste
and Nortech Landfill, 3) Energy 2001, 4) Recology Auburn Placer, 5) the Placer County
Air Pollution Control District, 6) the Placer County Local Enforcement Agency,
7) Roseville Power, 8) PG&E, and 9) proximate commercial and industrial entities such
as the Thunder Valley Casino and Rio Bravo. For the purposes of the stakeholder
meetings, the WPWMA and Consultant acknowledge that engaging the aforementioned
stakeholders will require up to eleven (11) separate meetings averaging four (4) hours
per meeting. This average meeting time includes, but is not limited to, Consultant’s time
to contact the stakeholder and set up the meeting, plan for the meeting, conduct the
meeting and prepare summary notes following the meeting.
Prior to engaging with any of the stakeholders, Consultant shall coordinate and lead a
meeting of an Advisory Committee consisting of WPWMA staff and staff from the
Member Agencies. The purpose of the Advisory Committee is to provide input and
comments on Consultant’s work products. The WPWMA shall be responsible for
initially contacting the Member Agencies to identify the members of the Advisory
Committee. Once the members of the committee have been established, the WPWMA
will provide the contact information for each of the committee members to Consultant.
Consultant shall prepare an agenda for, and conduct an initial meeting of, the Advisory
Committee to discuss and attempt to reach a level of consensus on the following key
elements of the LFG strategic plan and its development: 1) role of the Advisory
Committee, 2) project schedule, 3) philosophy and principles, 4) goals and priorities,
5) list of stakeholders and 6) potential private-public partnership opportunities. At least
three (3) business days prior to the first meeting of the Advisory Committee, Consultant
shall issue an agenda to each of the committee members. Within one (1) week of the
meeting, Consultant shall submit to the Advisory Committee members, for review and
70
comment, minutes of this first meeting. Consultant shall revise and reissue the minutes
to reflect comments from the committee members.
Following the initial Advisory Committee meeting, Consultant shall conduct a series of
private meetings with the other identified stakeholders that are not on the Advisory
Committee. The purpose of these meetings will be to discuss the key elements of the
strategic plan identified by the Advisory Committee and solicit feedback from the other
stakeholders about the future productive use of WPWMA’s LFG asset.
After meeting with the stakeholders, Consultant shall conduct a second meeting with the
Advisory Committee to discuss the results of the individual stakeholder meetings and
discuss revisions, if any, to the key elements of the strategic plan determined during the
first meeting of the committee. At least three (3) business days prior to the second
meeting of the Advisory Committee, Consultant shall issue an agenda to each of the
committee members. Within one (1) week of the meeting, Consultant shall submit to
the Advisory Committee members, for review and comment, minutes of this second
meeting. Consultant shall revise and reissue the minutes to reflect comments from the
committee members.
Before proceeding with the subsequent tasks, Consultant shall attend a meeting of the
WPWMA Board of Directors to present the recommended Philosophies and Principles
and Goals and Priorities of the strategic plan for the Board’s comment and approval.
Consultant shall revise these elements of the strategic plan, as applicable, based on the
WPWMA Board’s comment and direction.
TASK 2 – RESEARCH AND DOCUMENTATION
Under this task, Consultant shall conduct the necessary research to establish at least
the following elements of the LFG strategic plan: 1) planning horizon of the document,
2) current and future availability of the LFG asset throughout the planning period,
3) methods for beneficially utilizing the LFG asset, 4) assessment of the technical,
environmental, permitting and regulatory concerns with beneficially using the LFG asset
and 5) availability of grants and incentives and private-public partnerships to utilize the
LFG.
The following details the required efforts of Consultant in conducting the research and
documentation phase of this project.
TASK 2A – PLANNING HORIZON
The planning horizon is generally controlled by the predictable life of the resource, the
engineering life and payback of the technologies used to manage the resource, and the
typical industry terms for LFG sales and power purchase agreements. Consultant’s
research into the optimal planning horizon timeframe shall include considerations of
existing and future agreement terms, permitting, design, engineering, procurement and
construction. Based on Consultant’s research and professional judgment, Consultant
shall identify a preferred planning horizon timeframe.
Following Consultant’s analysis of the preferred planning horizon timeframe, Consultant
shall distribute and email to each of the Advisory Committee members outlining the
recommended planning horizon timeframe and the justification of the identified
timeframe. Consultant shall solicit feedback and comment from the Advisory
Committee, via email, and shall revise the recommended planning horizon accordingly.
71
TASK 2B – AVAILABILITY OF THE LFG ASSET
Consultant shall prepare estimates of the quality and quantity of LFG that is expected to
be generated and available for recovery throughout the planning horizon as identified by
Consultant in Task 2A. The resulting LFG estimates shall be presented on an
annualized basis in terms of both standard cubic feet per minute (scfm) and million
British Thermal Units per hour (MBtu/hr).
Task 2B.1 – Landfilled Waste Stream Modeling
For the purposes of conducting the LFG predicative modeling (Task 2B.3), Consultant
shall develop a series of waste stream compositions that reflect the general composition
of materials that have been landfilled over time at the WRSL and that are expected to
be landfilled in the future throughout the project planning period. Consultant shall utilize
these waste stream composition estimates to establish the appropriate methane
generation rate (k) and methane generation potential (L0) input values (or similar modelspecific input parameters) for use in an industry-accepted, first-order LFG generation
decay model such as the Intergovernmental Panel on Climate Change (IPCC) model or
the US EPA New Source Performance Standard (NSPS) Subpart HH model.
At a minimum, Consultant shall establish the applicable model input values for the
following conditions and timeframes:
Condition
Time Frame
x
Prior to operation of the MRF and acceptance of
wastewater treatment plant sludges
1979 - 1995
x
Following MRF construction and acceptance of
wastewater treatment plant sludges; prior to
foodwaste diversion program
1996 - 2016
x
Following implementation of a foodwaste diversion
program
2016 – end of
planning horizon
Task 2B.2 – LFG Collection System and Composition Assessment
Consultant shall assess the current and potential quality of the LFG resource based on
representative operational data from the WPWMA’s existing LFG collection system.
Consultant shall assess the current LFG collection system data to understand the
anaerobic health of the landfill, how these conditions influence current LFG generation
and collection rates and possible ways of improving the LFG collection system and its
operation for the purposes of improving the anaerobic health of the landfill.
Consultant shall use a set of stoichiometric algorithms that utilize the LFG concentration
data measured with a Landtec GEM2000 or equivalent instrument. The WPWMA will
provide Consultant historical LFG extraction well data and a map of the LFG well
locations. Consultant shall analyze this data and generate a summary data set for each
LFG extraction well that is normalized to a theoretical maximum methane concentration.
Consultant shall calculate the anaerobic health index for each extraction well as the
ratio of the actual versus theoretical maximum methane concentration for that well.
Consultant shall conduct a trending analysis of the index of each well over time to
72
identify potential over/under-draw conditions, oxygen intrusion and resultant waste
degradation, and other impacts relevant to long-term LFG availability. Consultant shall
assess the existing LFG composition data for the following common trace fuel
contaminants and identify potential requirements for pretreatment.
x
Reduced sulfur compounds
x
Halogenated organic compounds
x
Siloxanes
x
Fixed gas diluents (oxygen, nitrogen, carbon dioxide, water vapor)
Based on the analysis of the system data, Consultant shall identify potential methods
the WPWMA can implement to improve the LFG collection system operation
effectiveness and efficiency and the anaerobic health of the landfill.
Task 2B.3 – LFG Predictive Modeling
Consultant shall utilize annual waste disposal quantities provided by the WPWMA, the
model input values identified by Consultant under Task 2B.1 to prepare LFG predictive
modeling estimates through 2014. Consultant shall utilize their findings from Task 2B.2
and input from the WPWMA to calibrate the modeling estimates against the actual
operating conditions of the WPWMA’s current LFG system.
Following this calibration, Consultant shall prepare LFG predictive modeling estimates
through the end of the project-planning period.
Task 2B.4 – Report of LFG Asset Availability
Consultant shall summarize the efforts of Subtask 2B in a technical memorandum to the
WPWMA. Following the WPWMA’s review of the technical memorandum, Consultant
shall revise the memorandum to incorporate the WPWMA’s comments and issue a final
version of the technical memorandum.
TASK 2C – LFG UTILIZATION OPTIONS
Consultant shall review and evaluate commercialized LFG utilization options and market
and site conditions to determine the most site-appropriate potential end-uses for the
LFG asset. The assessment shall include consideration of local industrial, commercial
and residential energy needs and conversion opportunities, such as:
x
On-site or local conveyance for the production of vehicle fuels
x
On-site electrical generation for on-site use - both base load and peak-shaving
x
On-site electrical generation for sale to a utility (e.g. PG&E, Roseville Power, etc.)
x
LFG conveyance for off-site electrical generation
x
LFG conveyance for direct medium- or high-Btu combustion applications
x
LFG conveyance for boiler or combined cycle power plants
x
LFG conveyance for other industrial applications (e.g. bio plastics production, etc.)
73
Consultant shall evaluate the current state of technologies for transforming LFG into
useful end products. Consultant shall assess the long-term commercial viability of the
technologies based on project-specific factors including but not limited to:
x
Duration of commercial usage
x
Modularity and scalability
x
Environmental and operational compatibility
x
Overall efficiency and sustainability
x
Ability to meet established stakeholder goals and priorities
Consultant shall identify available utility connections and development sites at the
WRSL (for both electric and LFG processing or transmission projects) and the nearby
Sunset Industrial Area. The assessments shall consider both near and long-term
utilization benefits (i.e., energy rate structures) within the constraint of established
commercial viability. Consultant shall review public air emissions inventory information
to identify and any locate major source emissions sources located near the WPWMA’s
facility that indicate significant fossil fuel consumption and potential interest in utilizing
alternative energy sources.
Consultant shall summarize the initial results of the LFG utilization market information
and the technology assessment in a matrix-scoring format to facilitate side-by-side
comparison of the pros and cons and costs and benefits of each technology.
After Consultant has assessed individual technologies and determined which
technologies could be implementable by the WPWMA, Consultant shall define a
comprehensive set of project requirements, outputs, capacities and other conceptual
project parameters to facilitate selection of appropriate alternative combinations of
technologies to maximize LFG utilization. If requested by the WPWMA, Consultant
shall also consider combinations with other potential on-site or nearby energy
developments that may provide additional economies-of-scale, such as photovoltaic,
wind or anaerobic digestion.
Consultant shall identify any significant risks associated with long-term LFG utilization
projects by evaluating commonly encountered downside risks of each opportunity and
suggest measures to reduce project exposure to higher risk elements including, but not
limited, to the following:
x
Available long-term quantity and quality of extractable LFG
x
Requirements for LFG pretreatment
x
Price variation of pipeline natural gas and electricity
x
Changes in government programs that regulate production or support revenues
from the sale of LFG or LFG resultant products (e.g. electricity, fuel, bio plastics,
etc.)
x
Competing gas collection and control system operational objectives, such as
requirements to enhance control of surface, perimeter or groundwater migration
impacts
74
TASK 2D – PERMITTING AND ENVIRONMENTAL REVIEW REQUIREMENTS
The existing operating permits for the WPWMA’s facilities may require modification to
allow for changes in how the WPWMA utilizes LFG. Consultant shall review the
WPWMA’s existing permits to identify any necessary revisions to accommodate the
identified utilization options.
Consultant shall identify and list other anticipated governmental permit obligations, with
estimates of level of effort, associated costs, and ranges of timing required to complete
applications and obtain approvals for the utilization options identified by Consultant in
Task 2C.
Based on Consultant’s findings during the compilation of alternatives information,
Consultant shall provide preliminary identification of potential adjacent property, right-ofway, and easement issues for the identified utilization options. Consultant shall
estimate approximate levels of effort, associated costs, and ranges of timing required to
complete applications and negotiate required easements and encroachment permits (if
any) for each of the options.
Potential environmental impacts, as typically considered in an initial environmental
assessment, shall also be reviewed by Consultant for applicability to the identified
utilization options. Consultant shall obtain this information from key documents
submitted and approved for previous WPWMA site development projects (e.g., current
facility operating permits, Environmental Impact Reports, Initial Environmental
Assessment Questionnaires, Negative Declarations and Planning Permit Applications)
as well as from professional experience and judgment of Consultant. Consultant shall
identity and consider priority environmental assessment issues early in the data review
process which could strongly impact project viability. These priority issues may include,
but are not limited to, the following:
x
Natural resource evaluation
x
Cultural resource investigations
x
Mitigation planning
x
Ecological and endangered species surveys
x
Noise analysis
x
Other preliminary environmental studies
x
Public meetings
As part of the initial environmental data review, Consultant shall identify issues such as
flood hazard areas, wetlands, endangered or threatened wildlife or vegetation species
habitat, and critical wildlife habitats within the possible project area. Additionally,
Consultant shall identify the opportunities or constraints of regulatory drivers applicable
to external project customers (e.g., green energy portfolio standards, low-carbon fuel
standards, emissions restrictions, etc.).
Additional substantial engineering investigations and mitigation designs may also be
required in advance of implementing certain types and configurations of projects.
75
Consultant shall identify these possible impacts which may include, but are not limited
to, the following:
x
Geology and geotechnical evaluations
x
Storm water, erosion, and sediment control plans
x
Traffic control plans
x
Pipeline safety monitoring and security plans
x
Flow control automation
x
Hazardous material storage plans
TASK 2E – GRANTS, CREDITS AND 3P OPPORTUNITIES
Consultant shall investigate potential grant opportunities available to the WPWMA that
could help reduce capital costs associated with each of the identified utilization
methods. The purpose of this effort is to identify possible grant funding sources as well
as to insure the WPWMA is positioned to respond immediately to grant solicitations in
the future and to be in a strong position for award of any such grants.
At a minimum, Consultant shall review Pacific Gas & Electric programs including the
Self Generation Incentive Program (SGIP) and Senate Bill 32 (Renewable Market
Adjusting Tariff (ReMAT))1 along with California Energy Commissions’ Electric Program
Investment Charge (EPIC) and AB 118 grant solicitation programs.
Consultant shall identify potential subsidies or credits that could help to reduce
operating costs or increase operating revenues. Examples of potential subsidies and
credits include, but are not limited to: 1) renewable energy credits (RECs), 2) renewable
natural gas Federal renewable identification number (RIN) credits, 3) California low
carbon fuel standard (LCFS) credits and 4) carbon credits. Consultant shall provide a
summary of each credit or subsidy including a brief explanation of the program and the
applicability of the credit or subsidy program as it pertains to each of the alternatives.
Consultant shall identify the current and projected future value of the credit or subsidy
(on both a unit basis and an annualized basis) and provide a professional opinion
regarding whether or not the credit or subsidy should be included in the analysis of each
alternative’s financial viability.
Consultant shall research partnership opportunities with one or more of the identified
stakeholders and other firms in the LFG-to-energy business. Consultant shall evaluate
the potential for private investors in LFG-energy-projects to take advantage of
incentives such as tax credits and exemptions, their potential willingness to make such
an investment, and the extent to which private ownership may benefit the WPWMA.
Consultant shall explore the potential for private investment in a CNG fill station, and
determine interest in CNG purchases by garbage hauling firms and agencies utilizing
the WPWMA’s facility. Consultant shall also identify and research potential
opportunities for direct use of CNG by surrounding property owners and developers,
and the potential to collaborate with colleges and universities.
1
Landfill gas is not eligible for Senate Bill 1122 ReMAT program currently being promulgated by the
California Public Utility Commission.
76
Consultant shall identify and review potential project financing options to supplement
any grant funding identified under this Subtask. Project financing options that shall be
considered by Consultant include, but are not limited to: 1) use of WPWMA Reserves,
2) loans,3) bonds and 4) private funding. Consultant shall investigate how different
alternatives for producing and utilizing LFG will influence funding approaches.
TASK 2F – SUMMARY OF RESEARCH AND DOCUMENTATION EFFORTS
Consultant shall summarize their efforts and findings of Task 2 in a technical
memorandum to the WPWMA.
Consultant shall submit an initial draft of the technical memorandum to the WPWMA
electronically, in Microsoft Word format, for review and comment. Following receipt of
the WPWMA’s comments, Consultant shall revise the technical memorandum as
appropriate and reissue a revised draft electronically, in Microsoft Word format, to the
WPWMA and each of the members of the Advisory Committee.
Consultant shall attend a meeting of the Advisory Committee to discuss the technical
memorandum and solicit feedback from the Advisory Committee members. Following
the meeting, Consultant shall finalize the technical memorandum based on comments
received from the Advisory Committee.
TASK 3 – DEVELOPMENT OF ALTERNATIVES
Following completion of Task 2, Consultant shall prepare a list of possible LFG
utilization project arrangements. Possible alternatives include, but are not limited to, the
following:
x
Alternative 1: utilize LFG to produce electricity for sale to utilities such as PG&E
or Roseville Power.
x
Alternative 2: utilize LFG to produce CNG for use by refuse haulers and others at
an on-site fueling station.
x
Alternative 3: utilize LFG to produce electricity for on-site use (e.g. MRF,
WPWMA administrative offices, etc.)
x
Alternative 4: build a pipeline to Rio Bravo for direct transmission of LFG.
Consultant shall identity all reasonable alternatives for the beneficial use of LFG and a
qualitative assessment of the relative timing to implement each alterative. After
preparing the list of alternatives, Consultant shall identify and provide a reasonable
justification for discarding alternatives with obvious serious problems. Consultant shall
rank the remaining alternatives according to their potential feasibility. Consultant shall
identify the four (4) top-ranked alternatives for subsequent analysis.
TASK 4 – ECONOMIC ANALYSIS
Prior to conducting an economic analysis of the ranked alternatives developed under
Task 3, Consultant shall first develop a modeling framework for financial projections
through the selected planning horizon.
The modeling framework shall be developed and presented in Microsoft EXCEL and
include a dedicated tab/sheet in the file that contains all assumptions used in the
subsequent economic analysis. Consultant shall create individual tabs/sheets for each
77
of the four (4) top-ranked alternatives identified under Task 3, maintaining consistency
in layout to aid in the comparison of alternatives. Assumptions that are specific to each
alternative shall be denoted at the bottom of the applicable individual sheet(s). The
model shall be designed in such a way to clearly forecast and display net revenue by
year throughout the planning period for each of the four top-ranked alternatives.
After Consultant has developed the model framework, Consultant shall provide a copy
of the model framework to the WPWMA for review and comment. Upon receiving the
WPWMA’s approval of the model framework, Consultant shall input the appropriate
quantity, cost and revenue information for the top ranked alternatives.
Following completion of the data input and initial economic analysis, Consultant shall
analyze the alternatives based on financial factors pertinent to WPWMA, including, but
not limited to the following:
x
annual net revenue
x
investment required
x
operating cost
x
present value of net revenue
x
complexity and risk
x
length of commitments to other parties
TASK 5 – RECOMMENDATION OF PREFERRED ALTERATIVE
Consultant shall make a preliminary recommendation regarding the Preferred
Alternative to the WPWMA Advisory Committee. Consultant shall provide a written
justification of the recommendation prior to meeting with the Advisory Committee. After
receiving input from the committee, Consultant shall revise and finalize the
recommendation.
Following identification of the Preferred Alterative, Consultant shall develop a proposed
implementation schedule that includes at least the following elements: 1) conceptual
design, 2) environmental review and permitting 3) procurement and contract
negotiation, 4) construction 5) performance testing and 6) start of operations.
TASK 6 – STRATEGIC PLAN
Based on the efforts and findings from Tasks 1- 5, Consultant shall draft and submit a
comprehensive Strategic Plan following the framework approved by the WPWMA Board
of Directors and including a discussion of the alternatives considered,
recommendations, project financing and implementation plan. The Strategic Plan shall
include a Table of Contents, an Executive Summary, the report body, and appendices
containing technical memos and financial spreadsheets.
Consultant shall submit an initial draft of the strategic plan electronically to the
WPWMA, in Microsoft Word format, for review and comment. Following receipt of the
WPWMA’s comments, Consultant shall revise the strategic plan as appropriate and
reissue a revised draft, in electronic format, to the WPWMA and each of the members of
the Advisory Committee for review and comment.
After receiving comments from the WPWMA and the Advisory committee, Consultant
shall revise, as appropriate, and finalize the Strategic Plan for submittal to the Board of
78
Directors. Consultant shall provide fifteen (15) bound print copies and one electronic
copy of the Final Strategic Plan. Consultant shall present the Final Strategic Plan at a
Board meeting chosen by WPWMA.
TASK 7 – ADDITIONAL SERVICES
The WPWMA may request Additional Services of Consultant on an as-needed basis
subject to the WPWMA’s approval of a written scope of work and cost proposal
provided by Consultant. In no event shall said Additional Services exceed the cost
allocated in Exhibit B. Consultant shall not proceed with or bill to this Task for
Additional Services until authorized in writing by the WPWMA’s Executive Director. Any
approved Additional Services and costs will be appended to this Agreement and such
work will be subject to all provisions of this Agreement.
79
EXHIBIT B-1
TASK BUDGETS
Task
Description
Budget
1
Project Initiation and Engagement of Stakeholders
$33,407
2
Research and Documentation
$51,426
3
Development of Alternatives
$9,449
4
Economic Analysis
$20,981
5
Recommendation of Preferred Alterative
$10,890
6
Strategic Plan
$23,058
7
Additional Services
$20,000
Total
$169,211
EXHIBIT B-2
RATE SCHEDULE
Description
Rate
Capitol Public Finance Group (Will Dickinson)
$175.00/hr
TSS Consultants (Fred Tornatore & Matt Hart)
$154.00/hr
Golder Associates
Ken Haskell
$246.00/hr
Rich Haughey
$226.00/hr
Andy Wang
$189.00/hr
Jason Nettleton
$189.00/hr
Steve Nguyen
$142.00/hr
Admin support and word processing
$79.00/hr
The hourly rates noted above include salary, overhead and profit. Other direct charges will be billed at
Consultant’s actual cost. Automobile mileage reimbursement shall be at the Standard Mileage Rate in place at
the time reimbursement is requested, as determined by the Internal Revenue Service.
80