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January 23, 2018 - Image 2

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The Michigan Daily

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All of the other $6.7 million was
not.”

In contrast to Hutton’s data

from the staff meeting, City
Administrator Howard Lazarus
emphasized
the
inaccurate

statistics
presented
to
the

Environmental Commission.

“There was a presentation

made to the environmental
commission that was incorrect
in terms of the fund status,”
Lazarus said. “The Solid Waste
Fund is actually in reasonable
shape.
The
fund
balance

actually is not dropping in the
way it was represented and it’s
not because of staffing.”

According
to
Craig

Hupy,
public
service
area

administrator, the Solid Waste
Fund revenue in an average year
is approximately $14 million
and will only drop significantly
if a drastic scenario occurs.

However,
Lazarus
reported

higher projected numbers for
the end of the fiscal year than
Hupy.

“The end of year balance

for the Solid Waste Fund is
forecasted for the end of the
fiscal year to be $22 million,”
Lazarus said. “There’s a drop in
what’s called the unrestricted
fund balance, this is at $8.5
million, but that’s forecasted
to rebound in the fiscal year of
2019 to go up to $10 million.”

The Solid Waste Fund sources

primarily
from
dedicated

property tax millage, according
to Lazarus. Both recycling and
solid waste are supported by
the Solid Waste Fund. Smith
explained in an email interview
the closing of the Materials
Recovery Facility significantly
impacted the fund.

“Two
major
things
have

impacted the fund — The first
is
recycling;
the
shutdown

of
the
materials
recovery

facility or MRF has resulted

in
significantly
higher
cost

for recycling at the same time
markets for these materials
have declined,” Smith wrote.
“Second,
the
fund
had
to

account for pension and other
post employment, which was a
huge hit to the fund balance. On
the plus side, the new landfill
contract is 30 percent cheaper
than our previous one, which
about offsets the increased
recycling cost, but what creates
long term deficits though is the
MRF, which cannot be safely
operated
without
significant

investment.”

Mayor Christopher Taylor

released
a
recycling
report

explaining
the
termination

of the City’s contract with
ReCommunity,
the
former

operator of the MRF, and their
new relationship with Recycle
Ann Arbor. The new agreement
is not a long-term, sustainable
solution but is functioning as a
temporary service.

“The MRF remains inactive,

but
RAA
utilizes
the

location
to
organize

and loose load materials
for hauling to recovery
facilities
in
Ohio
and

Taylor, MI,” Taylor wrote
in the statement. “Although
hauling recyclables to Ohio
is not a long term solution,
the facility does provide
improved glass recycling.”

Based
on
Hutton’s

report before the Council
in December, the City’s
inadequate staffing is a
major factor in the Fund’s
drop.

“Between
2010
and

2014 the City lost four
experienced solid waste Full
Time Equivalents and did
not replace them,” Hutton
said. “The City has one FTE
in field operations and a few
positions with some solid
waste responsibility. The
position you authorized in
2016 still remains unfilled.
The City is deferring this
hire until it updates the
Solid Waste Plan, which
expires at the end of this
month.”

However,
Communications

Specialist
Robert
Kellar

discounted
Hutton’s
report,

saying
staffing
is
not
the

primary concern, since the City
has had similar levels of staff
in solid waste as six years ago.
Hupy also claimed the City has
accounted for FTEs over the
past several years.

“We only have one FTE

open right now and we’re
interviewing for it,” Hupy said.
“So the FTE’s that we’ve had
have been pretty consistent over
the last six years and as we’ve
had turnover we’ve filled them.”

Overall, Hupy emphasized

prioritizing different aspects
of the plan based on the City
Council’s goals toward zero
waste.

“Part of the planning effort

will have to be prioritization of
what items get done first and
with what resources,” Hupy
said. “This isn’t an unlimited
amount of money so you have
to decide what gets done first so
that’s why the solid waste plan
goes back through council so
they can mold it to make sure it
reflects their values.”

Kellar highlighted recycling

as the primary concern for the
2018 Solid Waste Plan based on
the community’s priorities.

“Recycling is part of our

sustainability goals, whether it
costs the city money or makes
the city money within the
Solid Waste Fund, we’re going
to continue doing it because it
something the community has
said is of value,” Kellar said.

The
City
is
reportedly

satisfied
with
the
current

status of the Solid Waste Fund.
The new plan aims to fulfill
zero waste goals but will be
changing their approach toward
recycling through community
collaboration in the process.

“I think people have looked at

recycling in one way for a very
long time because it was a very
stable and an under-the-radar
market, but that has changed
dramatically so people are going
to have to think about recycling
in new ways,” Kellar said.

2 — Tuesday, January 23, 2018
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