File #: PUB17-185    Version: 1 Name:
Type: Public Utilities Board
File created: 9/6/2017 In control: Public Utilities Board
On agenda: 9/11/2017 Final action:
Title: Receive a report, hold a discussion, and provide a recommendation regarding the Solid Waste Department's landfill mining operation.
Attachments: 1. Exhibit 1 - Mining Presentation Revised
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Agenda Information Sheet

 

DEPARTMENT:                     Solid Waste

 

CM/ ACM:                                          Mario Canizares

 

Date:                                                               September 11, 2017

 

SUBJECT

Title

Receive a report, hold a discussion, and provide a recommendation regarding the Solid Waste Department’s landfill mining operation.

Body

 

BACKGROUND

In 2015, the City of Denton’s Solid Waste Department recommended a multi-year landfill mining operation as a new program in the department’s proposed FY 2015-16 budget. The Public Utilities Board (PUB) and City Council were briefed on the program as part of the budget process before eventually approving the operation as part of the City’s FY 2015-16 budget.

 

On August 4, 2015, the City Council approved a three (3) year interagency agreement between the City of Denton and the University of Texas at Arlington (UTA) for landfill mining research. During a work session on November 17, 2015, the City Council received a briefing on landfill mining which included results from existing UTA research and a report on the various benefits of landfill mining. During that discussion, staff expressed that mining would begin in mid-2016. It is worth noting that neither a financial analysis nor a feasibility study was provided as part of the aforementioned presentations. 

 

Beginning in January 2016, a series of equipment purchases totaling $4.56 million were authorized by the PUB and Council, and Solid Waste staff began reorganizing operations to prepare for landfill mining. To date, $3.51 million has been expended on equipment and additional operational expenses have been incurred. Despite these expenditures, the mining operation has not broken ground and a number of operational challenges have not been addressed.      

 

Following recent organizational changes, staff began evaluating a number of Solid Waste projects and operations. As part of this effort, a financial analysis of the landfill mining operation was performed. After reviewing the results, staff halted further investments into the mining operation and cancelled outstanding equipment orders. Staff is seeking policy direction from the Public Utilities Board (PUB) and City Council on the future of the landfill mining operation.

 

OPTIONS

The Public Utilities Board (PUB) may recommend elimination of the landfill mining operation, proceeding with the operation, or provide an alternative course of action.

 

RECOMMENDATION

Staff recommends eliminating the landfill mining operation effective immediately. 

 

PRIOR ACTION/REVIEW (Council, Boards, Commissions)

July 13, 2015 - PUB recommended approval of University of Texas at Arlington research agreement

 

August 4, 2015 - City Council approves University of Texas at Arlington research agreement

 

November 17, 2015 - City Council work session on landfill mining

 

December 15, 2015 - City Council authorizes grant application for equipment funding

 

January 9, 2016 - PUB recommends purchase of equipment

 

January 10, 2016 - City Council approves purchase of equipment

 

January 25, 2016 - PUB recommends purchase of equipment

 

March 28, 2016 - PUB recommends purchase of equipment

 

September 12, 2016 - PUB recommends purchase of equipment

 

September 20, 2016 - City Council approves purchase of equipment

 

November 7, 2016 - PUB recommends purchase of equipment

 

November 8, 2016 - City Council approves purchase of equipment

 

February 13, 2017 - PUB recommends purchase of equipment

 

February 21, 2017 - City Council approves purchase of equipment

 

FISCAL INFORMATION

The landfill mining operation is currently funded from the Solid Waste Department’s operating fund and capital improvement program (CIP).

 

STRATEGIC PLAN RELATIONSHIP

The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision.  The foundation for the plan is the five long-term Key Focus Areas (KFA):  Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship.  While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:

 

Related Key Focus Area:                       Sustainable & Environmental Stewardship

Related Goal:                                                                2.5 Develop Capital Improvement Program (CIP) based on community needs

 

EXHIBITS

1.                     Presentation

 

                                                                                                                                                   Respectfully submitted:

                                                                                                                              Ethan Cox, 349-7421

                                                                                                                              Director of Solid Waste