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January 6, 2011 in City
County leaders balk at city’s timeline for waste plant
Eric Vangemert, 41, operates the hand controls in the crane pulpit at the Waste-to-Energy Plant on the West Plains. Vangemert uses paddles to mix the garbage in the pit below his perch. Spokane city officials want county commissioners to sign off on $18 million worth of upgrades to the facility, including the crane controls.
(Full-size photo)
Establishing a garbage democracy in Spokane County may prove as difficult as bringing representative government to Afghanistan.
The challenge came into sharp focus Tuesday when Spokane city officials asked county commissioners to hurry up and sign off on $18 million worth of upgrades to the city’s Waste-to-Energy Plant.
The work is intended to position the incinerator for 20 more years of operation, but commissioners want to consider other possibilities and are reluctant to give up their limited leverage. Although the city owns and controls the plant, it must get county approval for the proposed expenditure.
City officials have shown little interest in commissioners’ call for transferring control of the Spokane Regional Solid Waste System to a health-district-style coalition. Instead, the city offers a system in which it would have veto power.
Meanwhile, commissioners and at least some leaders of the county’s smaller cities want to avoid any action that would increase costs or limit future options.
A Spokane proposal to overhaul the plant and settle a contract dispute could do both. So commissioners balked Tuesday when city officials sought their approval in time for City Council action Monday.
“It’s not fair,” Commissioner Mark Richard said. “You wouldn’t ask your council to make this decision in a week.”
Actually, that’s about all the notice the City Council will get, City Attorney Howard Delaney replied.
“In the end, they get the asset, so maybe it’s not so much of a concern for them,” Richard said.
Contracts that created the Spokane Regional Solid Waste System call for the city to retain ownership of the Waste-to-Energy Plant even though county ratepayers helped pay for it.
Commissioners planned to receive a more detailed report this morning on how the plant improvements would affect the $98-a-ton “tipping fee” the plant charges to process garbage.
Commissioners had hoped for a substantial fee reduction this year when 20-year construction bonds are paid off. Debt service has accounted for about half of the $98 fee.
However, the most optimistic city projection shows the proposed improvements will drive the rate up to more than $109 if paid off by the end of 2014 – when commissioners hope to have a new governance system in place.
“Unless the governance changes, the county isn’t willing to commit beyond 2014,” when the county’s contract with the Solid Waste System expires, Richard said.
Delaney countered that, if the new debt is spread over a longer period, the county and other cities would have to pay it only as long as they remain in the system.
He said the issue is urgent because Wheelabrator Spokane’s contract to operate the plant expires Nov. 16.
Not only would the planned overhaul extend the trash burner’s life, it could drive down operating costs by encouraging other companies to compete for a new contract to operate the plant.
Delaney said two other companies might bid on the job if Wheelabrator would agree to drop a clause in its current contract that allows it to take over a rival’s winning bid.
He said city engineers agree the improvements and repairs are needed, but the work is a condition of a tentative deal to eliminate the “first right of refusal” clause to renew Wheelabrator’s contract through 2014.
If the deal isn’t approved right away, the city needs to take its dispute with Wheelabrator to court and immediately seek operating proposals from other companies, Delaney said.
“The time for study doesn’t exist,” he said.
It would be necessary to mothball the plant for a year to study other garbage disposal methods, and city officials aren’t willing to do that, Delaney told commissioners.
If paid over three years, the waste plant renovations would add an estimated $18.75 to the tipping fee. If spread over 15 years, the increase would be about $5 a ton.
Russ Menke, director of the Solid Waste System, said two other issues contribute heavily to the potential increase in operating costs.
One is the likelihood that Puget Sound Energy will no longer pay a premium for the electricity the waste plant generates.
Menke said Puget agreed to pay about 8 1/2 cents per kilowatt-hour to avoid building a new generation plant of its own, but demand has declined and a new plant is no longer needed.
Unless state and federal lawmakers can be persuaded to declare garbage-generated electricity “renewable,” the Waste-to-Energy Plant’s power income will drop to approximately 5 1/2 cents per kilowatt-hour, Menke said.
Renewable power fetches about 10 cents, and laws force utility companies to buy it.
“Unless we get approval for renewable electric rates from the Legislature, we’re in trouble,” Spokane City Councilman Bob Apple said last week in a Solid Waste Liaison Committee meeting.
Menke estimated the likely drop in electricity income would add $12.73 per ton to the garbage processing fee.
He said the other major contributor to escalating costs is city officials’ plan to levy a 20 percent utility tax on garbage and a 6 percent tax on electricity next year when an annexation brings the Waste-to-Energy Plant inside city limits.
The utility taxes will add $19.60 to the tipping fee, Menke estimated.
Delaney said city officials plan to share the tax with Solid Waste System members according to how much garbage they contribute.
Member governments could return the money to their constituents if they wish, Delaney said.
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Dazzeetrader11 on January 06 at 2:25 a.m.
Drop the rates. Verner just raised taxes…now she sends Delaney over to have the COunty fund much of the plant..and with nothing comeing back. Then comes the Obama “hurry up”. What a crock. Commissioners should sepend their money this way.
If the City gets the money, the City should spend to rehab it. Verner doesn’t have that money just yet. She will when the new fees on sewer, water and garbage kick in. Very very dishonest. I cannot blame the Co Commissioners for taking a hard line. Verner won’t fool them.
Alfredo on January 06 at 2:32 a.m.
Gotta throw an “Obama” in there right? Everything boils down to him.
TheRoyLarsen on January 06 at 5:36 a.m.
I think the article is related to issues involving upgrades to excrement and its fashion. The reference could have been better suited for Congress, not so much Obama.
TheRoyLarsen on January 06 at 5:37 a.m.
My bad. It’s the Waste-Energy Plant, not the sewage factory. Sorry. Stand down.
SpokyDaBear on January 06 at 7:01 a.m.
Obama made our economy worse than it was two years ago. We got change for the worse not for the better. He is a lame-duck president. No chance in hell being re-elected. Just a black Jimmy Carter…
Alfredo on January 06 at 7:07 a.m.
SpokyDaBear, you’ve made your feelings of racism known. The color of his skin has nothing to do with anything except you obviously despise him being in the White House and not wearing a janitor’s outfit.
a) Sad to say because I know it’s going to make you cry but George W. Bush sent us this steamy hot pile of mess we call an economy right now and believe it or not it’s getting better according to most economist (not that you’d listen or care since race is what fuels your hatred and no amount of fact could sway you).
b) Look up the definition of “Lame Duck”
ChefGus/ John Olsen on January 06 at 7:08 a.m.
Lets keep the string “au point, s’il vous plait”… merci j
SpokyDaBear on January 06 at 7:29 a.m.
@Alfredo… black is the reference the U.S. Census uses for racial reference. If saying black is racist, you need to talk to the U.S. Census.
Obama knew exactly the state of economy when he campaigned for change. If you are buying a fixer-upper, you can’t complain one day after closing you inherited all the problems and shouldn’t be blamed for them.
.
reservedparking on January 06 at 7:46 a.m.
Spoky:
That’s exactly what President Obama did:
Inherited an awful mess from 8 years of government-endorsed financial mayhem. He knew the state of the economy. Campaigned for (needed) change. Certainly he’s not taking the blame, nor should he.
Accepted the challenge to try and make things better.
Ran up against the Republicant’s admitted objective to block any initiatives of the Obama administration (thus the ‘Party of No’ moniker, and if the shoe fits…)
…and their additional stated intent to attempt to make Obama a one-term president, rather than trying to fix what was so obviously broken.
Your attempt to spin it toward the negative has delightfully backfired.
liarsinnews on January 06 at 8:20 a.m.
Perusal of the foregoing re color, the only color I see is GREEN as in green backs.
MrNatural on January 06 at 8:58 a.m.
Solid Waste is big business and a huge money maker. It is no wonder that the city and county are at odds over how big a slice of the pie each get. The WTE plant will be paid off soon and already the “schemers” are trying to figure out a way to slaughter the cash cow. Once we were told that if WE (as a community) invest in this venture that when this plant is paid off that OUR fees for disposal would eventually drop. Now they are weasel-scheming a way to increase the dang costs without any added benefit to OUR community. Can’t we at least get one stinking year of reduced disposal fees before they find a way to shank us again?
Please Recycle :)
johno on January 06 at 9:07 a.m.
So many questions:
1. If the construction bonds account for half the $98 a ton tipping fee and those are going away because the bonds are paid off, why does the tipping fee go up? The article states the costs of the improvements costs $5.00 a ton is spread over 15 years. Doesn’t that mean the tipping fee, even with the improvements added in, should go down to $54.00 a ton (half of $98 plus $5.00)?
2. Even though the plant doesn’t qualify as a renewable energy source, is the price the plant charges per kilowat hour similar to what is charged for non-renewable power generation such as from natural gas? The plant should be able to charge the market rate. What is Avista paying per kilowat hour?
3. Does the plant significantly reduce the emission of methane gas (8 times more damaging than carbon dioxide) that would come from a normal lanfill such that it should be classified as a renewable resource?
4. Why can’t we have an agreement among the parties to temporarily continue with the status quo while all the issues are looked at in depth? A snap decision shouldn’t be made to lock the region into a 20 year deal. My understanding is it would be much cheaper to just haul the trash away by rail to a landfill.
SpokyDaBear on January 06 at 9:32 a.m.
@reservedParking
Maybe he would have done better if his party had control of both the house and the senate and the press.
Oh, wait, he had that……
must have slipped on a political banana….
but then again, Reagan had neither control of the house or senate and inherited all the mess from Jimmy Carter and things got better within two years…
go figure..
johno on January 06 at 9:43 a.m.
I forgot to mention that it’s my understanding that it would be cheaper to put the waste in a landfill. I toured a modern landfill in Vancouver British Columbia a couple of years ago. It was sealed in such a way so that no waste could escape and the methane gas it produced was used to generate power. The waste to energy plant rains pollution down on our region on a daily basis. I know they claim it is within acceptable limits, but it’s still pollution.
misjustice on January 06 at 10:34 a.m.
Garbage in, garbage out…
Dazzeetrader11 on January 06 at 11:34 a.m.
No reason to rush this. An equitable soltion that helps both is far more desireable. City thinks they have the upper hand and Verner will push it. Always has amazed my how the city and the county occupy the same space, represent the same people but never get along.
Must be a ego thing.
I do know this: Al and Mary never got along and it won’t start now since Shogan has perpetually insulted Mark RIchard in public. That didn’t sit well with the commissioners.
Not much political skills in the City Hall area.
Kind of a bad deal for the citizens. Verner’s request appears to be unreasonable….she’s gotten away with it before but given the level of friendship….the price will be high this time.
Cooperation is fine but Verner’s a greenie liberal manipulator of truth and monies. ( deficit galore) and she facing off with 3 conservatives. She’s using her capital unwisely. But what about the citizens!! Getting messed around.
Not worries about Alfredo…….you know you’re winning an argument if he calls you a “racist”. It’s about all he’s got. lol,..poor kid.
greenlibertarian on January 06 at 1:47 p.m.
“but then again, Reagan had neither control of the house or senate and inherited all the mess from Jimmy Carter and things got better within two years…”
There you go again, Yogi.
“The recession was nearly a year old before President Ronald Reagan stated on October 18, 1981, that the economy was in a “slight recession”.[21]
The “Reagan recession,”[22][23][24] coupled with budget cuts (which were enacted in 1981 but began to take effect in 1982), led many voters to believe that Reagan was insensitive to the needs of average citizens.[25][26][27] In January 1983, Reagan’s popularity rating fell to 35%—approaching levels experienced by Richard Nixon and Jimmy Carter at their most unpopular.”
“As the risk exposure of S&Ls expanded, the economy slid into the recession. Soon, hundreds of S&Ls were insolvent. Between 1980 and 1983, 118 S&Ls with $43 billion in assets failed.”
“Federal inaction worsened the industry’s problems. Responsibility for handling the S&L crisis lay with the Cabinet Council on Economic Affairs (CCEA), an intergovernmental council located within the Executive Office of the President. At the time, the CCEA was chaired by Treasury Secretary Donald Regan. The CCEA pushed the FHLBB to refrain from re-regulating the S&L industry, and adamantly opposed any governmental expenditures to resolve the S&L problem. Furthermore, the Reagan administration did not want to alarm the public by closing a large number of S&Ls. These actions significantly worsened the S&L crisis.[9]
The S&L crisis lasted well beyond the end of the economic downturn. The crisis was finally quelled by passage of the Financial Institutions Reform, Recovery and Enforcement Act of 1989. The estimated total cost of resolving the S&L crisis was more than $160 billion.”
http://en.wikipedia.org/wiki/Early_1980s_recession
Ignorance abounds.
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As to the trash-burner, make whatever minimal costs are necessary to let it burn more cleanly and efficiently over the next 20 years, get rid of Wheelabrator, put the electricity up for auction on a long term contract, and tipping fees can be reduced to about $60 a ton.
drsqawken on January 06 at 3:35 p.m.
What’s all the fuss about? I just fill up my American made pick up truck with my garbage and go for a nice long drive in the woods; when I get really far out there, I just toss it off. Problem solved. I don’t need no stinkin socialist garbage collection scheme, I’m self-reliant, a pioneer. Did the Founding Fathers have a Wheelabrator? NO! Why? Because it’s unconstitutional, that’s why!
Spokanedude on January 06 at 4:51 p.m.
I don’t have a dog in this hunt since I no longer live in Spokane, but I just wanted to say that I bet that guy in the article’s photo is really good at the skill crane games.
SpokyDaBear on January 06 at 5:10 p.m.
@greenlibertarian….
Obama is a one-term sinking ship…
Just look at all the president’s men jumping ship to cash in the last two years of his office.
Maybe once he is out, he can do his change “thingy” like Carter and go around the world and smile a lot and apologize for America.
Too bad, he had a lot of potential, but when you promise everyone everything you are bound in the end to deliver nothing..
Even his own supporters have dropped him. How else could the Republicans take over Congress? They simply did not show up at the polls for the mid-term elections. Either that or they are tired of having to defend him or they simply don’t care. Pretty sad, either way.
Like Oprah said, “Times, they are a changing….”
drsqawken on January 06 at 5:36 p.m.
I am against change and against the Obamanation. America has spoken, Palin in 2012. She’s hot, Obama is not.
D Statler on January 06 at 6:14 p.m.
Putting my garbage in my blind neighbors can has saved thousands for the last 20 years. Spokane should have just been dumping in Seattle’s cans and saved the money and down wind polution. :^)
misjustice on January 06 at 6:44 p.m.
Seriously, drsqawken, you dump garbage in the woods? That’s wrong on so many levels…
Teseract on January 06 at 10:11 p.m.
The national average tipping fee is 64.88/ton, with Spokane being the HIGHEST IN THE NATION at 98.00/ton. (http://www.jgpress.com/archives/_free/001782.html) The drop in electrical revenue would add 12.73/ton. The city wants to add 19.60 in taxes to the tipping fee after upping our other city utilities 14-17% this year. The increases due to the “improvements” would add 12.00/ton. So that brings us to what, $142.33/ton, which is more than DOUBLE the national average?
This could of course drop when the Wheelabrator contract runs out, but who wants to bet they become the only bidder since no one wants their lower bid to be taken over by Wheelabrator, so we continue on with the status quo there.
Only in Spokane, folks. I swear this place is more corrupt than Chicago during the gangster era.
Dazzeetrader11 on January 06 at 10:14 p.m.
Hawken..is that you our old dear friend??
Yes the garbage in the forest thing…animals can eat and the flora and fauna get resotred. What’s so wrong with that J?