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Section 1
Wasteshed Analysis
R. W. Beck has evaluated the current and future market place for the Victoria Landfill.
This section provides county by county assessments of collection and landfill/transfer
operations in the region. The region was defined as an area within a 100 mile radius
of the City of Victoria. This section provides an understanding of what landfills and
transfer stations are currently being used, and evaluates the potential for them to send
waste to the City of Victoria’s Landfill based on factors such as pricing, transportation
costs and existing contracts.
R. W. Beck completed this review based on a combination of the following data
sources:
„
Interviews with cities, private haulers and disposal facility operators;
„
Published solid waste planning reports (e.g., regional solid waste management
plans); and
„
Annual disposal facility reports submitted to the Texas Commission on
Environmental Quality.
The section concludes with R. W. Beck’s research of disposal pricing and
opportunities for the City of Victoria to be more competitive with these other
facilities.
Table 1-1
Current Disposal Fees at Victoria Landfill
Description
Disposal Fee
Waste Collected in Victoria County
Fee per Compacted CY
$10.36
Fee per Uncompacted CY
$8.86
Fee per ton
$34.54
Waste Collected Outside Victoria County
5/19/06
Fee per Compacted CY
$11.79
Fee per Uncompacted CY
$9.89
Fee per ton
$39.14
Section 1
FINAL
1.1 Wasteshed Analysis
R. W. Beck has organized the wasteshed assessment geographically into three subregions based on proximity to the City of Victoria, since hauling distance can
significantly affect the feasibility of whether waste is disposed in the City’s Landfill.
The three areas are outlined in Figure 1-1.
Figure 1-1: Wasteshed for City of Victoria Landfill
Type I Landfills
1 - City of Victoria
2 - BFI El Centro
3 - J.C. Elliott
4 - Republic Seabreeze
5 - Clean Harbors Altair
6 - BFI Blue Ridge
7 - Fort Bend Regional
8 - BFI Tessman Rd
1-2 R. W. Beck
910 11 12 13 14 15 16 -
WM Covel Gardens
WM Austin Community
BFI Sunset Farms
Texas Disposal Systems
Comal County
City of Alice
City of Kingsville
McMullen
Type IV Landfills
17 - Nido Inc
18 - Sprint Fort Bend County
19 - IESI Travis County
20 - City of Austin
Transfer Stations
21 - Jackson County
22 - Yoakum
23 24 25 26 27 28 29 30 31 32 -
Hallettsville
Wharton
Matagorda
Weimar
Sealy
Country Waste
Brenham
Aransas County
TDS Starcrest
Live Oak
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Wasteshed Analysis
1.1.1 Counties Closest to Victoria County
The counties that are adjacent to Victoria County or within a radius of approximately
40 miles are the most likely to have an interest in using the City’s Landfill.
Correspondingly, R. W. Beck’s analysis is the most detailed for these counties, as
compared to counties that are located further from the City of Victoria.
1.1.1.1 Aransas County
Facilities
The Aransas County Transfer Station located in Rockport handles approximately
6,700 tons annually with a gate rate of $12 per cubic yard. County staff estimate that
primary customers are small commercial haulers (estimated at 75 percent of the
volume at the transfer station). Additional waste comes to the transfer station from
citizens. Transfer station waste is hauled to either the El Centro Landfill ($18 per ton)
or J.C. Elliott Landfill ($20.75 per ton), both located in Nueces County. Distances to
these two landfills are 55 to 65 miles, one way, from the transfer station (as compared
to 65 miles to Victoria). When the J.C. Elliott Landfill closes within the next several
years, Aransas County does expect the tipping fees in Nueces County to increase
several dollars per ton (estimated to be $3 to $5 per ton).
Interest in the Victoria Landfill: Since the hauling distance would be similar between
landfills in Nueces County and Victoria (65 miles), Aransas County could have an
interest in the Victoria Landfill, but only if the tipping fee would be competitive. This
would likely mean a tipping fee in the range of $21-25 per ton. They are not
contractually limited to using the landfills in Nueces County.
Hauling Operations
Collection services for the cities of Rockport, Fulton and Aransas Pass are provided by
BFI 1 , which hauls the waste to one of its landfills in Nueces County (either J.C. Elliott
Landfill or El Centro Landfill). 2 Dawson Recycling and Disposal provides hauling
service from the Aransas County Transfer Station to either El Centro Landfill or J.C.
Elliott Landfill. The contract rate is $140 per haul to El Centro Landfill and $125 per
haul to J.C. Elliott Landfill for a 140 cubic yard container. The County is one and a
half years into a two-year contract with Dawson and is very likely to renew this
contract. Some smaller haulers haul directly to the J.C. Elliott Landfill.
Interest in the Victoria Landfill: With significantly lower tipping fees at the two BFI
Nueces County landfills compared to the Victoria Landfill, R. W. Beck would not
expect that BFI would have an interest in hauling to the Victoria Landfill.
Furthermore, BFI operates its collection vehicles from its Corpus Christi operation,
which would mean that collection vehicles making a trip to the Victoria Landfill at the
end of the day would have to drive back to Corpus Christi after unloading waste at the
1
BFI is also known as Allied. The company is in the process of changing its name from BFI to Allied
on a national basis. The company is referred to as BFI in this report.
2
BFI owns and operates the El Centro Landfill. The J.C. Elliott Landfill is owned by the City of
Corpus Christi, which has contracted with BFI for the operation of the facility.
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Victoria Landfill. When disposing of waste in one of the Nueces County landfills, the
trip to its vehicle yard after the last load is relatively short.
Key Finding(s)
There could be an opportunity for the Aransas County Transfer Station waste (6,700
tons per year) to go to Victoria, but it would require a significant pricing decrease to
interest the County.
It is unlikely that BFI’s direct haul would be disposed of in the Victoria Landfill.
1.1.1.2 Calhoun County
Facilities
There is a transfer station in Calhoun County which is utilized primarily by residents
in the unincorporated areas of the County. R. W. Beck estimates that the amount of
waste collected at this transfer station is small relative to that collected in the
incorporated areas of the County.
Hauling Operations
Waste Management collects most of the waste for residential, commercial dumpster,
and commercial roll-off customers in the City of Port Lavaca and other areas of
Calhoun County. Waste Management also hauls the waste that is collected at the
Calhoun County transfer station. All waste collected by Waste Management in
Calhoun County is being disposed of at the Victoria Landfill.
Key Finding (s)
Most of the waste generated in Calhoun County is currently hauled to the Victoria
Landfill by Waste Management. There are no significant opportunities to increase the
tonnage going to the Victoria Landfill from Calhoun County.
1.1.1.3 DeWitt County
Facilities
The City of Yoakum is located on the county line of DeWitt County and Lavaca
County. For purposes of discussion, R. W. Beck included the City of Yoakum in the
DeWitt County section. The City of Yoakum operates a transfer station and has a
contract with Texas Disposal Systems (TDS) to haul the waste to the TDS Landfill in
Creedmoor, which is approximately 75 miles from Yoakum (Victoria is approximately
40 miles from Yoakum). Although staff at the Yoakum transfer station did not know
the exact amount of tonnage transfer annually to the landfill, they estimated that three
to four transfer trailer loads per day, five days a week, were hauled to the landfill.
Based on this information, R. W. Beck estimates that between 18,200 and 22,750 tons
are hauled from the Yoakum transfer station annually.3 Although staff at the Yoakum
transfer station was not able to provide the disposal rate at the TDS Landfill, the gate
3
Based on an average of 3.5 trailer loads per day, and between 20 and 25 tons per load.
1-4 R. W. Beck
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Wasteshed Analysis
rate at the TDS Landfill is $7.10 per compacted cubic yard versus $11.17 per
compacted cubic yard at the Victoria Landfill for waste from outside the County.
The City of Cuero operates a citizens’ collection station (CCS) for collection of waste
and recyclable material. The City of Cuero hauls waste collected at the CCS to the
Yoakum transfer station.
Interest in the Victoria Landfill: R. W. Beck was not able to confirm the expiration
date of the TDS contract with City of Yoakum. City of Yoakum staff indicated that
they are content with the current relationship with TDS. The waste from the City of
Cuero is discussed in more detail in the “Hauling Operations” section below.
Hauling Operations
The City of Cuero provides solid waste collection services for residential and
commercial accounts. The City direct hauls this waste to the transfer station in
Yoakum, which is approximately 18 miles from Cuero, for a disposal fee of $10.40
per compacted cubic yard. Cuero is approximately 28 miles from the Victoria Landfill
and the disposal fee for waste coming from outside Victoria is $11.79 per compacted
cubic yard. Cuero was previously a customer of the Victoria Landfill and hauled
approximately 5,000 to 8,000 tons there annually.
According to staff at the City of Cuero, the unincorporated areas of DeWitt County are
primarily serviced by a number of smaller private haulers (i.e., haulers other than BFI,
Waste Management, IESI, or TDS). One of these haulers is Country Waste, which
hauls the waste to their transfer station in Bellville; see Section 1.1.2.4 for further
information.
Interest in the Victoria Landfill: The City of Cuero pays $10.40 per compacted cubic
yard at the Yoakum transfer station compared to $11.79 if it were to haul to the
Victoria Landfill.
Additionally, the one-way haul distance to Yoakum is
approximately 10 miles less than the distance to Victoria. The City of Cuero is a
previous customer of the Victoria Landfill and stated that turn-around times at the
Yoakum transfer station are shorter than at the Victoria Landfill. Cuero is in the
second year of a five-year contract with the City of Yoakum for disposal at the transfer
station.
Key Finding (s)
The key to increasing the amount of waste going to the Victoria Landfill from DeWitt
County is capturing the waste from the Yoakum transfer station. If TDS continues to
haul this waste, it is unlikely that the waste will be hauled to the Victoria Landfill
unless the cost to do so is significantly less than the hauling and disposal costs
associated with using their own landfill in Creedmoor. If and when the City of
Yoakum decides to open the hauling and disposal for bid, another contractor could
win the business, assuming the disposal cost at the Victoria Landfill enabled the
contractor to submit a competitive bid. Additionally, since the City of Yoakum does
not haul the waste, the private contractor would likely have to be willing to provide
this service.
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For the City of Cuero, there is currently little incentive to haul waste to Victoria. The
City of Yoakum transfer station is less expensive and closer. The disposal cost of the
Victoria Landfill would have to be low enough to offset the increased distance, as well
as compensate for other factors such as the ease and quickness of dumping waste at
the transfer station versus at a landfill.
1.1.1.4 Goliad County
Facilities
Goliad County operates three citizens’ collection stations in the County. These
facilities are located south of Goliad, in Berclair and Waesatche. The County does
not have specific records concerning the quantity of waste collected at each site;
however, it is estimated to be in the range of 800 to 1,200 tons per year. 4
BFI services the station near Goliad. Collected waste is hauled to a BFI landfill in
Nueces County. While not independently confirmed, BFI is thought to collect most of
the waste in the County since they are servicing the largest station, which accounts for
approximately two-thirds of the collection station waste. Goliad County does not have
a contract with BFI for their services.
Waste Management services the Waesatche and Berclair facilities; this waste is
transferred to the Victoria Landfill. Goliad County does not have a contract with
Waste Management for their services.
The City of Goliad is 26 miles from Victoria and 72 miles from BFI’s El Centro
Landfill.
Interest in the Victoria Landfill: BFI is not likely to send collected waste to the
Victoria Landfill under the current contract since the company already sends the waste
to a BFI facility for disposal.
Hauling Operations
The City of Goliad signed a five-year contract in January 2006 with Texas Disposal
Services (TDS), which owns and operates a landfill in Creedmoor, for residential and
commercial collection within the City. 5 TDS also provides some collection services
in the unincorporated areas of the County. R. W. Beck estimates that TDS collects
1,500 to 2,500 tons per year.
B&B Trash Services of Victoria is the only other company in the County that provides
collection services in the unincorporated areas of the County. B&B is currently a
customer of the Victoria Landfill.
4
Based on estimates provided by Goliad County concerning the number of collections per year between
open-top and compacting containers. Further estimates were calculated based on container size and
compaction ratios.
5
The City previously contracted with BFI for waste collection services, but elected to pursue another
provider due to customer service issues with BFI.
1-6 R. W. Beck
5/19/06
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Wasteshed Analysis
Per Goliad County staff, there are a few construction contractors working in the
County, and they typically self-haul material directly to the Victoria Landfill. This is
not thought to be a significant amount.
Interest in the Victoria Landfill: R. W. Beck would not expect for TDS to use the
Victoria Landfill since it has its own.
Key Finding
Under current conditions, there is not a great likelihood that the opportunity exists to
increase the quantity of material taken to the Victoria Landfill as R. W. Beck would
not expect BFI and TDS to change their current practices. However, a change in the
terms of the current Victoria Landfill contract or a new operations contract could
increase the opportunity for waste from the citizens’ collection stations to go to the
Victoria Landfill, which would represent approximately 500 to 800 tons annually.
1.1.1.5 Jackson County
Facilities
The Jackson County Transfer Station is located near Ganado, which is approximately
35 miles from the City of Victoria. This transfer station accepts approximately 2,262
tons of municipal solid waste per year for disposal. The tipping fee at the transfer
station is $49.11 per ton.
Most of this waste is disposed of at the Victoria Landfill (1,562 tons). The County
does send the remaining 700 tons to the Clean Harbors Landfill in Altair, which is
approximately 48 miles from the transfer station. Material sent to this landfill is
primarily dense waste (e.g. construction and demolition debris) since their pricing is
on a per cubic yard basis ($9.75 per cubic yard). The County also sends waste to this
facility when the County needs to haul other material back to the County from
companies located near Altair.
Interest in the Victoria Landfill: While Jackson County uses the Victoria Landfill as
its primary disposal location, the County does send approximately 1/3 of its waste
stream to the Clean Harbors Landfill in Altair. There is a potential that the Clean
Harbors Altair Landfill could offer a better price in the future as the landfill is
currently seeking a permit amendment that would significantly increase its disposal
capacity, which was approximately 14,700 tons in 2004. County staff also have
expressed interest in hauling waste to the TDS Landfill in Creedmoor, which can offer
disposal rates of $20 to 25 per ton, but with a hauling distance of 123 miles it is
unlikely that this would be a viable option given recent increases in fuel pricing.
County staff specifically stated that the high tipping fees at the Victoria Landfill
prompted them to explore their options.
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Section 1
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Jackson County is definitely a customer that has a strong interest in using the City’s
landfill, based on its current practice. However, there is also a chance that the County
would use another facility (e.g., Altair Landfill) if it would receive a lower price.
Hauling Operations
Haulers operating in Jackson County either take their waste to the County transfer
station or to the Victoria Landfill. TL Services, an independent hauler, takes all of the
waste it collects in the County to the transfer station per County staff. Waste from
several of the smaller towns (e.g., Lolita and Vanderbilt) are also taken to the transfer
station. Waste Management, which services Edna and Ganado, hauls waste collected
in Jackson County directly to the Victoria Landfill (Edna – 6,300 tons and Ganado –
1,100 tons). Based on this information, most of the haulers in Jackson County are
sending their waste to the Victoria Landfill directly or indirectly via the Jackson
County transfer station.
Key Finding
The opportunity may exist to gain another 700 tons that is currently going to Clean
Harbors. However, Victoria needs to recognize that this is a customer that is
considering other options such as TDS and Clean Harbors.
1.1.1.6 Lavaca County
Facilities
The City of Hallettsville has a transfer station. This facility handles approximately
800 tons annually. This waste is transported by BFI to its Tessman Road Landfill in
San Antonio, 120 miles away. The City of Hallettsville is 45 miles from Victoria.
This transfer station is serviced as a part of the residential and commercial contract
that the City has with BFI. This contract will be in effect for approximately three
more years. The gate rate at the Tessman Road Landfill is $20.50 per ton.
The City of Yoakum is located on the county line of DeWitt County and Lavaca
County. See Section 1.1.1.3 for information pertaining to solid waste operations in the
City of Yoakum.
Interest in the Victoria Landfill: As long as BFI has the contract with the City of
Hallettsville, this waste will in all likelihood continue to be landfilled at the Tessman
Road Landfill.
Hauling Operations
BFI provides collection services for several cities in Lavaca County, including
Halletsville, Shiner and Moulton. Collection vehicles serving these locations are
based out of BFI’s San Antonio facility. Since these trucks need to return to San
Antonio and can typically make one daily load, they use BFI’s Tessman Road
Landfill.
The City of Halletsville’s contract with BFI will be in effect for approximately three
more years. When this contract is going to expire, the City would have an interest in
exploring options for other service providers if they could attain a better price.
1-8 R. W. Beck
5/19/06
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Wasteshed Analysis
The City of Shiner’s contract with BFI expires in 2008. While the City has contracted
with BFI since 1992, City staff are undecided about whether this service would be
renewed or re-bid in 2008.
The City of Moulton’s contract with BFI expires in October 2007. When this contract
expires, the City would have an interest in exploring options for other service
providers if they could attain a better price.
Country Disposal Systems provides collection services in unincorporated areas of
Lavaca County. See Section 1.1.2.4 for further information.
Interest in the Victoria Landfill: Options to use the City of Victoria Landfill are
unlikely as long as BFI is the service provider. If these municipal contracts are re-bid
in the future, opportunities to use the Victoria Landfill could arise if another company
would win the contract(s).
Key Finding (s)
Opportunities for waste to go to the Victoria Landfill are very limited over the next
few years. BFI has a long-term history of providing collection services within this
County, and would generally be expected to pursue this work, which would likely
mean that the waste would go to the Tessman Road Landfill. However, if another
company would win any future contracts, it could potentially mean a tonnage increase
for the Victoria Landfill.
1.1.1.7 Refugio County
Facilities
There are no transfer stations or landfills located within Refugio County.
Hauling Operations
BFI and Absolute Industries are the primary haulers operating in Refugio County.
„
BFI provides collection services for the City of Refugio. All residents and
businesses within city limits must use the City’s designated contractor, in this
case BFI. Refugio has had a contract with BFI since September 1993. The latest
renewal to the contract became effective September 2004 and is for a five year
term. BFI hauls the waste to one of its landfills in Nueces County (either J.C.
Elliott or El Centro). Although City staff was not able to provide the amount of
tons collected and disposed by BFI, R. W. Beck estimates that it is in the range of
2,000 to 3,500 tons per year.
„
Absolute Industries, based in Nueces County, provides collection services in the
unincorporated areas of the County. Absolute Industries only collects one
truckload of waste per collection day, and the company disposes of its waste at
the El Centro Landfill, which is relatively close to its yard, for a disposal fee of
approximately $22.01 per ton. 6
6
Based on the gate rate of $21.25 per ton plus 3.61 percent fuel surcharge ($0.76 per ton).
5/19/06
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The City of Refugio is approximately 45 miles from both the Victoria Landfill and
BFI’s El Centro Landfill.
Due to the Victoria Landfill contract terms, Waste Management can not dispose of
waste collected in Refugio County in the Victoria Landfill. If allowed, Waste
Management has estimated that it may be able to collect approximately 40 tons
annually from commercial sources. The quantity could increase if Waste Management
would win any municipal collection contracts.
Key Finding (s)
The waste that BFI collects in the City of Refugio is being hauled to one of the Nueces
County landfills. Although the distance to the Victoria Landfill is similar to the
landfills in Nueces County, the per ton disposal fees at these landfills are in the low
$20 range, versus $39.14 for the Victoria Landfill. Additionally, BFI stores its
collection vehicles in Corpus Christi so that collection vehicles making a trip to
Victoria at the end of the day would have to drive back to Corpus Christi after
unloading waste at the Landfill. When disposing of waste in one of the Nueces
County landfills, the trip after the last load is disposed is relatively short. While BFI is
collecting waste in the City of Refugio, it is unlikely it will be disposed at the City of
Victoria Landfill. If Refugio were to choose another contractor when the current BFI
contract expires on August 31, 2009, the Victoria Landfill could potentially compete
for the waste if the disposal cost was competitive with other landfills in the region,
specifically those in Nueces County.
Absolute Industries also faces a short trip to its yard after disposing of waste at the
El Centro Landfill. Because of this, it is unlikely waste they collect will be disposed
at the City of Victoria Landfill.
1.1.1.8 Victoria County
Facilities
The Victoria Landfill is located within Victoria County.
Hauling Operations
Within the City of Victoria, all waste is collected by the City (residential) and Waste
Management (commercial). All of this waste is disposed of in the Victoria Landfill.
Waste Management provides most of the collection operations in other parts of the
County, and all of that waste is disposed of in the Victoria Landfill. The only other
hauler in the County is B&B Trash Service, which has approximately 300 customers.
Key Finding (s)
Virtually all of the waste collected in Victoria County is disposed of in the Victoria
Landfill.
1-10 R. W. Beck
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Wasteshed Analysis
1.1.2 Counties within a Radius of 40 to 70 Miles
R. W. Beck also completed a review of solid waste facility and hauling operations for
counties that are within a radius of 40 to 70 miles from the City of Victoria.
1.1.2.1 Bee County
Facilities
There are no transfer stations or landfills located within Bee County.
Hauling Operations
BFI provides collection services for the City of Beeville, the county seat of Bee
County and its largest town in terms of population. BFI hauls the waste collected to
one its landfills in the Corpus Christi area. City staff was not certain of the total
tonnage hauls by BFI, but R. W. Beck estimates that the amount is likely in the 10,500
to 17,500 tons per year range. Beeville is approximately 55 miles from Victoria and
58 miles from Corpus Christi.
Interest in Victoria Landfill: The City of Beeville’s existing contract with BFI has
been renewed through June 2008. At this time, the City is unsure whether they will
renew the contract or re-bid it, but staff added that BFI has traditionally offered some
incentives to renew the contract.
Key Finding (s)
If BFI continues to haul waste for the City of Beeville, the waste will not likely be
hauled to Victoria since, as previously discussed, the vehicles used to haul this waste
are stationed in Corpus Christi. However, since Victoria is as close to Beeville as any
other landfill, there would be an opportunity for another contractor to haul its waste to
Victoria, if the disposal fee allowed them to make a competitive bid for collection
services.
1.1.2.2 Colorado County
Facilities
Clean Harbors owns the Altair Landfill in Colorado County. The Altair Landfill is
near its permitted capacity and only accepted 18,000 tons in 2004, according to
TCEQ’s Municipal Solid Waste in Texas: A Year in Review, 2004 Data Summary and
Analysis (TCEQ 2004 Annual Report). However, Clean Harbors is actively pursuing
a permit expansion, which would allow them to significantly increase the amount of
waste accepted at the site. The Altair Landfill is located near Columbus, which is
approximately 85 miles from Victoria.
The City of Weimar operates a transfer station. The City operates the transfer station,
but has a contract with TDS to haul the waste to their landfill in Creedmoor. The City
of Weimar is approximately 72 miles from the City of Victoria and 85 miles from
Creedmoor. Although staff at the Weimar transfer station did not know the exact
amount of tonnage transfer annually to the landfill, they estimated that 14 transfer
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trailer loads per week were hauled to the landfill. Based on this information,
R. W. Beck estimates that between 14,560 and 18,200 tons are hauled from the
Weimar transfer station annually. 7 The gate rate at the TDS Landfill is $7.10 per
compacted cubic yard.
Hauling Operations
The Weimar transfer station accepts waste from the cities of Columbus (Colorado),
Schulenburg (Fayette), Flatonia (Fayette), and Waelder (Gonzales). Additionally,
commercial haulers bring in waste from the surroundings area. R. W. Beck estimates
that most of the waste collected in Colorado County is taken to the Weimer transfer
station and subsequently the TDS Landfill.
Key Finding (s)
If Clean Harbors is successful in permitting a landfill expansion at the Altair Landfill,
they will likely be aggressive in marketing the landfill to increase the amount of waste
accepted. For areas north of Victoria, this represents an alternative disposal location.
The City of Victoria should monitor the progress of Clean Harbor’s expansion effort at
the Altair Landfill.
The Weimar Transfer Station is closer to Victoria than the TDS Landfill in
Creedmoor. However, since TDS is hauling the waste, it is unlikely that it would be
taken to the Victoria Landfill unless the disposal fees were lower than TDS’s cost to
dispose of the waste at its landfill. However, once the contract with TDS expires,
there would be an opportunity for another hauler to win the contract if the disposal
cost at the Victoria Landfill enabled them to make a competitive bid.
1.1.2.3 Fayette County
Facilities
There are no transfer stations or landfills located within Fayette County.
Hauling Operations
BFI provides collection services for the City of La Grange. Waste collected by BFI in
La Grange is hauled to BFI’s landfill in Austin. R. W. Beck estimates that BFI hauls
3,500 to 5,500 tons annually for La Grange. The City of La Grange has had a contract
with BFI since 1993 and there are two years remaining on the current contract. The
disposal cost is embedded in the collection cost and is not explicitly known by the
City. However, according to the 2004 TCEQ annual report, the gate disposal rate at
BFI’s Sunset Farms landfill in Austin is $18.99 per ton.
TDS hauls waste from Flatonia to its landfill in Creedmoor. The City of Schulenburg
takes its waste to a transfer station in Weimar, which is in Colorado County. TDS
provides hauling services for this landfill and hauls the waste to its landfill in
Creedmoor.
7
Based on an average of 14 trailer loads per week, and between 20 and 25 tons per load.
1-12 R. W. Beck
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Wasteshed Analysis
Country Waste, based out of Bellville in Austin County, provides some collection
services within the rural areas of Fayette County. County Waste hauls the waste to its
transfer station in Bellville, which processes approximately 5,000 tons annually.
Key Finding (s)
Landfills operated by Waste Management, BFI, and TDS in the Austin area are
approximately 65 miles from La Grange, which is centrally located in Fayette County.
La Grange is approximately 80 miles from Victoria. Additionally, disposal fees at the
Austin area landfills are in the $19 to $24 range per ton versus the City of Victoria’s
current $40 per ton rate. County Waste is hauling the waste it collects to its transfer
station in Bellville, which is approximately 65 miles from La Grange.
Without a dramatic decrease in the City of Victoria’s disposal rate, there is not much
incentive for a hauler to transport its waste a greater distance to Victoria when less
expensive options exist within the Austin area.
1.1.2.4 Gonzales County
Facilities
The City of Gonzales operates a citizens’ collection station that can be used by City
and County residents. This waste is transported by BFI to its Tessman Road Landfill
in San Antonio. This transfer station is serviced as a part of the residential and
commercial contract that the City has with BFI. This contract will expire in 2006, but
City staff was uncertain regarding whether the contract would be re-bid or extended.
The gate rate at the Tessman Road Landfill is $20.50 per ton. Gonzales is
approximately 75 miles from San Antonio and 60 miles from Victoria.
Hauling Operations
BFI provides collection services for the City of Gonzales. Collection vehicles serving
the City are based out of BFI’s San Antonio facility. Since these trucks need to return
to San Antonio and can typically make one daily load, they use BFI’s Tessman Road
Landfill. This contract will expire in 2006, but City staff was uncertain regarding
whether the contract would be re-bid or extended.
Country Disposal Systems (CDS) is based in Gonzales and provides collection
services to unincorporated areas of Gonzales, Dewitt and Lavaca Counties using three
25 cubic yard compacting vehicles. Waste from all three counties is landfilled at the
TDS Landfill in Creedmoor. The tipping rate for County Disposal Systems is
approximately $16.14 per ton. 8 The TDS Landfill is located approximately 50 miles
from the CDS office/yard (as compared to 60 miles to Victoria).
Interest in the Victoria Landfill: Regarding the City of Gonzales, options to use the
City of Victoria Landfill are unlikely as long as BFI is the service provider since the
fleet is based in San Antonio. CDS has a very low tipping fee at TDS. While CDS
could achieve some operational efficiencies by using the Victoria Landfill when
8
The per ton rate is based on a compacted cubic yard rate of $7.10 multiplied by 25 cubic yards (size of
the dump body) and divided by 11 (average load weight in tons) to equal $16.14 per ton.
5/19/06
R. W. Beck 1-13
Section 1
FINAL
operating routes in Dewitt and Lavaca Counties, they are not significant enough to
offset the difference in tipping fees between TDS and the Victoria Landfill.
Key Finding (s)
Based on the current operations, R. W. Beck would not expect that any significant
amounts of waste would go to the Victoria Landfill due to the current use of lower
cost landfills (e.g. BFI - Tessman Road and TDS - Creedmoor).
1.1.2.5 Karnes County
Facilities
There are no permitted transfer stations or landfills located within Karnes County.
Hauling Operations
Within Karnes County, Waste Management provides collection services for Karnes
City, Falls City, Kenedy and Runge. R. W. Beck estimates that between 6,500 and
11,000 tons is collected from these four cities. There is approximately one year
remaining on the contract with Karnes City. Waste collected within these cities is
hauled to Waste Management’s Covel Gardens landfill in San Antonio. This landfill
is located approximately 62 miles from Karnes City. The City of Victoria Landfill is a
similar distance from Karnes City. The disposal gate rate at the Covel Gardens
landfill is approximately $25, according to the 2004 TCEQ annual report. 9
Key Finding (s)
Since the Victoria Landfill is a similar distance from areas within Karnes County to
San Antonio, there is an opportunity for waste being generated in Karnes County to be
taken to the Victoria Landfill. However, the opportunity depends on which contractor
operates the Victoria Landfill.
For Waste Management and BFI, who both operate landfills in San Antonio, there
would have to be greater profit associated with hauling to Victoria rather than to their
own landfills in San Antonio. Private contractors would have an interest in
establishing hauling contracts in Karnes County, but the competitiveness of their bid
for collection services would rely heavily on the disposal rate at the Victoria Landfill.
1.1.2.6 Matagorda County
Facilities
The Matagorda County Transfer Station is located in Van Vleck, which is five miles
east of Bay City. This site handles 52,800 tons annually. The County contracted with
Waste Management to operate the facility in 1999, and has a five-year evergreen
contract. The transfer station receives most of the waste collected within the County
based on information provided by County staff. In addition, Waste Management and
9
Since Waste Management is hauling to its own facility, its disposal cost is likely much lower than the
stated gate rate.
1-14 R. W. Beck
5/19/06
FINAL
Wasteshed Analysis
BFI haul waste from the cities of Wharton and El Campo 10 , respectively. Citizens’
collection stations in the towns of Matagorda and Elmaton also send their waste to the
Matagorda County Transfer Station.
Waste from the transfer station is transferred by Rustin Transportation to the Republic
Brazoria County Landfill (Seabreeze) in Clute, which is approximately 38 miles
(as compared to 75 miles to Victoria). The gate rate at the transfer station is $40 per
ton. However, several haulers have negotiated more favorable rates based on greater
tonnage volumes (e.g. BFI at $32.50 per ton and CCR at $35 per ton). Waste
Management has a reciprocal agreement 11 with Republic for waste taken to the
Seabreeze Landfill from the transfer station. Therefore, Waste Management’s realized
disposal cost is much lower than the $7.25 per uncompacted cubic yard gate rate.
Interest in the Victoria Landfill: Waste Management indicated that it is unlikely the
waste from the Matagorda County Transfer Station would be hauled to the Victoria
Landfill. The haul distance is greater and the disposal fees are much higher since
Waste Management has a swap agreement with Republic for disposal at the Seabreeze
Landfill.
The disposal fee at the Republic Brazoria County Landfill (Seabreeze) is significantly
lower than the Victoria Landfill. The gate rate for loose waste is $7.25 per cubic yard.
This amount is likely to be lower for higher volume customers, and Waste
Management may have a reciprocal agreement with Republic that would further
reduce the cost per ton/cubic yard.
Hauling Operations
Collection operations within Matagorda County send their waste to the Matagorda
County Transfer Station or directly to the Republic Brazoria County Landfill. Most of
the waste does go to the transfer station, but collection operations in the Southeast part
of the County may go directly to the landfill.
Interest in the Victoria Landfill: R. W. Beck would not expect any of the hauling
operations in Matagorda County to use the Victoria Landfill because the Matagorda
County Transfer Station is closer to all the towns in the County than the Victoria
Landfill.
Key Finding (s)
Hauling distances of 38 miles and a tipping fee that is lower than $7.25 per cubic yard
makes it difficult to create a scenario in which waste from the Matagorda County
Transfer Station would go to the Victoria Landfill. With an extra 74 round-trip miles
to the Victoria Landfill, there would need to be a very significant decrease (e.g., 20 to
30 percent) in Waste Management’s current tipping fee to offset the higher hauling
10
Only a portion of the El Campo waste is going to the Matagorda County Transfer Station, with the
balance going to Clean Harbors and other BFI landfills in the Houston area.
11
Under reciprocal agreements, waste collected by two distinct companies/cities will go to a landfill
owned by the other company/city. The reason for these agreements is to decrease hauling times. These
types of agreements are relatively common in the solid waste industry, especially in metropolitan areas
like Houston where multiple companies may have hauling operations covering a wide geographic area
that are served by a relatively small number of disposal facilities.
5/19/06
R. W. Beck 1-15
Section 1
FINAL
costs. As part of a procurement process, the City of Victoria could request proposals
that include incentives for attracting larger volumes in an effort to further examine
options to send this waste to the Victoria Landfill.
1.1.2.7 Nueces County
Facilities
There are two active landfills in Nueces County. The J.C. Elliott Landfill is owned by
the City of Corpus Christi and operated by BFI. BFI owns and operates the El Centro
Landfill. The J.C. Elliott Landfill is nearing its capacity, at which time the City will
open the Cefe Valenzuela Landfill, which will also be operated by BFI. Once the Cefe
Valenzuela landfill is operational, major haulers and the City will utilize it for solid
waste disposal. A transfer station will be opened at the J.C. Elliott Landfill for use by
residents and smaller haulers.
Hauling Operations
The City of Corpus Christi provides solid waste hauling and disposal services within
the City limits. Waste collected within the City is disposed at the City’s J.C. Elliot
Landfill. Residential accounts are currently charged $14.35 per month for solid waste
collection and disposal. If residents show their current (within two months) utility bill
statement and a matching driver’s license, they can dispose of household garbage free
of charge.
Absolute Industries provides hauling services for unincorporated areas of Nueces
County. Absolute has a contract with the El Centro Landfill for waste disposal at a
gate rate of approximately $20 per ton, which includes a fuel surcharge and
environmental fee.
Interest in the Victoria Landfill: Since the City is constructing an additional landfill,
they do not have interest in utilizing the Victoria landfill. Absolute Industries is
highly likely to pursue renewing their contract for hauling solid waste for Nueces
County, and is not interested in hauling to the Victoria landfill.
Key Finding (s)
Since Corpus Christi owns its landfill, it is unlikely waste would ever be disposed at
the Victoria Landfill.
When Corpus Christi closes its J. C. Elliott Landfill and opens the Cefe Valenzuela
Landfill, it is generally expected that rates will increase, which may change the market
dynamic in Nueces County. Absolute Industries indicated they would be willing to
use the Victoria Landfill if the disposal fee was competitive.
1.1.2.8 San Patricio County
Facilities
The City of Portland utilizes the J.C. Elliott Landfill in Corpus Christi. San Patricio
County provides some citizen’s collection stations in various precincts for disposing of
tires, brush, and lumber, but does not have any landfills or transfer stations.
1-16 R. W. Beck
5/19/06
FINAL
Wasteshed Analysis
Hauling Operations
BFI provides pick-up and disposal services within the Portland City limits. The City
provides roll-off dumpsters for residents to dispose of brush and other household
waste. Waste collected through residential pick-up as well as waste delivered by
residents to the roll-off dumpsters is disposed of by BFI at the J.C. Elliott Landfill.
Solid waste pick-up and disposal in the County is provided by BFI, Waste
Management and Absolute Industries, who contract directly with individual residents.
These providers haul residential waste to the landfills in Nueces County. San Patricio
County collects and hauls roadside debris as well as residential brush which is either
hauled to BFI’s El Centro Landfill, or chipped within the County. The solid waste
collected at the citizen’s collection stations is hauled by Dawson Recycling and
Disposal to J.C. Elliott landfill.
Key Finding (s)
Individual residents contract privately with either Allied or Waste Management for
waste collection services. Dawson Recycling and Disposal is currently in the process
of signing a new contract with the J.C. Elliott landfill on a determined tonnage basis.
They are not bound from contracting with another landfill, and do have interest in the
Victoria landfill. The determining factors for Dawson Recycling would be price,
discounts and incentives to use the Victoria landfill.
When Corpus Christi closes its J. C. Elliott Landfill and opens the Cefe Valenzuela
Landfill, it is generally expected that rates will increase, which may change the market
dynamic in San Patricio County. Absolute Industries indicated they would be willing
to haul to the Victoria Landfill, rather than one of the landfills in Nueces County, if
the disposal fee was competitive.
1.1.2.9 Wharton County
Facilities
The City of Wharton has a citizens’ collection station that is for the exclusive use of
Wharton residents. This site handles approximately 7,200 tons of waste annually.
Waste from this site is hauled by Waste Management to the Matagorda County
Transfer Station which is approximately 32 miles (as compared to 67 miles to
Victoria). Waste Management pays the County a $1 per ton royalty fee for waste it
collects and sends to the transfer station.
Wharton County (Precinct 2: East Bernard) operates a citizens’ collection station that
handles approximately 1,200 tons annually. This waste is hauled approximately 30
miles to the Fort Bend Regional Landfill in Rosenberg; (as compared to 83 miles to
Victoria). The County is in the third year of a three year agreement that has pricing of
$6.50 per compact cubic yard and $5.50 per loose cubic yard.
Interest in the Victoria Landfill: Wharton County would not be expected to go the
Victoria Landfill due to longer travel distances and higher disposal fees. Refer to
Section 1.1.2.6 concerning the City of Wharton facility, since it goes to the Matagorda
County Transfer Station.
5/19/06
R. W. Beck 1-17
Section 1
FINAL
Hauling Operations
The City of Wharton contracts with Waste Management for collection services.
Again, this waste is hauled to the Matagorda County Transfer Station. The City of El
Campo contracts with BFI for collection services. Waste from El Campo goes to the
Matagorda County Transfer Station, Clean Harbors Landfill in Altair and other BFI
landfills in the Houston area.
Interest in the Victoria Landfill: Under the current operations, it is unlikely that the
waste from these cities would go the Victoria Landfill due to longer travel distances
and higher disposal fees.
Key Finding (s)
Shorter hauling distances and lower disposal fees in the Houston area make it unlikely
that waste from Wharton County could be disposed of in the Victoria Landfill. For
example, haulers may need to realize tipping fees that would be approximately 30
percent lower than the current costs to offset the longer hauling distances.
1.1.2.10 Wilson County
Facilities
There are no transfer stations or landfills located within Wilson County.
Hauling Operations
Waste Management provides collection services for the City of Floresville, the county
seat of Wilson County and its largest city. Waste Management hauls the waste 40
miles to its Covel Gardens landfill in San Antonio.
Key Finding (s)
Bexar County, which has two Type I landfills and a transfer station, borders Wilson
County to the east. Haul distances from Wilson County to Bexar County are relatively
short. For example, the City of Floresville is 40 miles from the Covel Gardens
Landfill compared to 92 miles from the Victoria Landfill. With the competitive rates
offered at the landfills and Bexar County and the shorter travel haul distance, it is
unlikely that waste generated in Wilson County would be disposed at the Victoria
Landfill.
1.1.3 Counties within a Radius of 70 to 100 Miles
R. W. Beck also completed a review of solid waste facility and hauling operations for
counties that are within a radius of 70 to 100 miles from the City of Victoria. Given
the likely availability of much closer solid waste facilities in these counties,
R. W. Beck focused our review of these counties on the available transfer stations and
landfills, as well as their pricing, and not their hauling operations.
1-18 R. W. Beck
5/19/06
FINAL
Wasteshed Analysis
1.1.3.1 Atascosa County
Atascosa County is located directly south of Bexar County, in which two Type I
landfills and one transfer are located. The City of Pleasanton, the largest city in
Atascosa County, is approximately 125 miles from Victoria versus 36 from San
Antonio. It is unlikely that waste from Atascosa County would be disposed at the
Victoria Landfill due to the availability of low cost disposal facilities in Bexar County.
1.1.3.2 Austin County
There are two transfer stations in Austin County, one operated by Country Waste, Inc.,
and the other by the City of Sealy. The City of Sealy hauls their waste to multiple
landfills, including the McCarty Rd Landfill in Houston, which is approximately 60
miles from the transfer station. According to the 2004 TCEQ Annual Report, the
disposal gate fee at McCarty Rd was $16.26 per ton. The Victoria Landfill is 110
miles from the Sealy transfer station. Austin County is located within 60 miles of
numerous Type I landfills in Harris and Fort Bend counties. It is unlikely that waste
from Austin County would be disposed at the Victoria Landfill.
1.1.3.3 Bastrop County
Bastrop borders Travis County to the east. There are three Type I landfills in Travis
County, one of which is owned and operated by BFI. According to the most recent
Regional Solid Waste Management Plan from the Capital Area Council of
Governments (CAPCOG), BFI is the primary hauler in the cities of Bastrop, Elgin and
Smithville. The City of Bastrop is approximately 110 miles from the City of Victoria.
It is unlikely that waste from Bastrop County would be disposed at the Victoria
Landfill.
1.1.3.4 Bexar County
There are multiple disposal options in Bexar County, including two landfills and one
transfer station. Per ton disposal rates for these facilities are very competitive: BFI
Tessman Road ($20.50), Waste Management Covel Gardens ($25.00), Starcrest
Transfer Station ($23.50). 12 Due to the distance of 115 miles from San Antonio to
Victoria, it is unlikely that any waste from San Antonio would ever be disposed of at
the Victoria Landfill.
1.1.3.5 Brazoria County
Republic Waste Services owns and operates the Seabreeze landfill in Clute, which is
approximately 115 miles from Victoria. The Seabreeze landfill is a relatively large
landfill, accepting approximately one million tons of waste at a gate rate of $22.75 in
2003. Republic serves 14 cities in Brazoria County, as well as some of the
12
The Starcrest Transfer Station is owned by the City of San Antonio, and operated by Texas Disposal
Systems, which has a long-term operations contract with the City. Waste from the transfer station is
hauled to the TDS Creedmoor Landfill.
5/19/06
R. W. Beck 1-19
Section 1
FINAL
unincorporated areas of the County. 13 It is unlikely that waste from Brazoria County
would be disposed at the Victoria Landfill.
1.1.3.6 Caldwell County
Waste from Caldwell County is going to the various landfills located in Travis
County.
The City of Lockhart has a contract with Central Texas Refuse for both its residential
and commercial collection services. The City of Luling has a contract with IESI for
its collection services. Both companies haul the waste to landfills in Travis County.
The cities of Luling and Lockhart are 44 and 30 miles from Austin, respectively, and
78 and 93 miles from Victoria, respectively. Due to the longer haul distance to the
Victoria Landfill and the competitive disposal rates at the landfills in Travis County, it
is unlikely that any waste from Caldwell County would be disposed at the Victoria
Landfill.
1.1.3.7 Comal County
Waste Management owns and operates the Comal County Landfill, a Type I landfill.
Additionally, Comal County is situated between Travis County and Bexar County,
both of which have multiple landfills that offer competitive disposal fees ranging from
$13.50 to $25.00. It is unlikely that waste from Comal County would be disposed at
the Victoria Landfill.
1.1.3.8 Duval County
The landfills in Nueces County are less than half the distance from Duval County than
the Victoria Landfill and offer very competitive disposal rates. It is unlikely that
waste from Duval County would be disposed at the Victoria Landfill.
1.1.3.9 Fort Bend County
There are three landfills in Fort Bend County. Per ton disposal rates for these facilities
are very competitive since they are a part of the Houston region: BFI Blue Ridge
($19.01), Sprint Fort Bend County ($19.50), 14 and Fort Bend Regional ($18.00). Due
to the distance of 106 miles from Fort Bend County 15 to Victoria, it is very unlikely
that any waste from Fort Bend County would ever be disposed of at the Victoria
Landfill.
1.1.3.10 Guadalupe County
There is one Type IV landfill in Guadalupe County. There is one Type I landfill in
Comal County and two Type I landfills in Bexar County, which both border
Guadalupe County. Nearby Travis County has three Type I landfills. Seguin, the
county seat and largest city in Guadalupe County, is 100 miles from Victoria. It is
13
According to the Seabreeze Landfill website (www.seabreezelandfill.com).
Converted from a compacted cubic yard rate of $6.50.
15
Based on the distance from Sugarland to Victoria.
14
1-20 R. W. Beck
5/19/06
FINAL
Wasteshed Analysis
unlikely that waste from Guadalupe County would be disposed at the Victoria
Landfill.
1.1.3.11 Hays County
Like Comal County, Hays County is situated between Travis County and Bexar
County, both of which have multiple Type I landfills that offer competitive disposal
fees ranging from $13.50 to $25.00 per ton. According to the most recent Regional
Solid Waste Management Plan from the CAPCOG, TDS, BFI, and IESI are the
primary haulers operating in Hays County. Both TDS and BFI operate Type I landfills
in Travis County and IESI operates a Type IV landfill in Travis County. It is unlikely
that waste from Hays County would be disposed at the Victoria Landfill.
1.1.3.12 Jim Wells County
The City of Alice in Jim Wells County operates a Type I landfill. According to the
2004 Annual Report from the TCEQ, the disposal gate fee at this landfill is $30 and
the landfill accepts waste from Jim Wells, Duval, Bee and Brooks Counties. The City
of Alice is 115 miles from Victoria. It is unlikely that waste from Jim Wells County
would be disposed at the Victoria Landfill.
1.1.3.13 Kleberg County
The City of Kingsville has a Type I landfill and the County operates a collection
station which collects approximately 2,000 tons annually. Kleberg County is located
adjacent and to the south of Nueces County, which has two active Type I landfills. In
order for waste generated in Kleberg County to be hauled to Victoria, it would have to
pass through Nueces County. It is unlikely that waste from Kleberg County would
ever be disposed at the Victoria Landfill.
1.1.3.14 Lee County
According to the most recent Regional Solid Waste Management Plan from the
CAPCOG, Lee County’s two largest cities, Giddings and Lexington, are serviced by
BFI. BFI owns and operates the Sunset Farms landfill in Austin, which is 50 to 55
miles from these cities, versus 100 to 120 miles from Victoria. The unincorporated
areas of the County are serviced by various haulers, but the landfills located in Travis
County are all much closer than the Victoria Landfill. It is unlikely that waste from
Lee County would be disposed at the Victoria Landfill.
1.1.3.15 Live Oak County
Live Oak County operates a transfer station which is located between the cities of
George West and Three Rivers. BFI, which has a contract with the County to haul the
waste, transfers the waste to one of its landfills in Nueces County. These landfills are
approximately 20 miles closer to the transfer station than the Victoria Landfill and
currently charge per ton disposal fees in the low $20 range, versus $39.14 for the
Victoria Landfill. The Victoria Landfill would have to offer rates that competed with,
or were lower than, these landfills in order for a hauler to use the Victoria Landfill
5/19/06
R. W. Beck 1-21
Section 1
FINAL
over the landfills in Nueces County. The County has typically signed short-term
contracts (one to two years) with BFI.
1.1.3.16 McMullen County
According the Texas State Data Center, the population of McMullen County as of July
1, 2004 was 867. The distance from Victoria (112 miles) and the amount of waste
generation in the County combine to make an unattractive target for the City of
Victoria if it were to more aggressively market its landfill capacity. Additionally, as
of 2004, the County operated a Type IAE landfill.
1.1.3.17 Travis County
There are three Type I and two Type IV landfills in Travis County. 16 Competition
between the three Type I landfills results in relatively low per ton disposal fees, as
follows: Waste Management Austin Community ($13.50), BFI Sunset Farms ($18.99),
and Texas Disposal Systems Creedmoor ($20.25). 17 Disposal rates at the Type IV
landfills are also competitive at $5.50 per uncompacted cubic yard at the City of
Austin and IESI landfills. Due to the distance of 122 miles from Austin to Victoria, it
is very unlikely that any waste from Travis County would ever be disposed of at the
Victoria Landfill.
1.1.3.18 Waller County
Waller County borders Harris County to the west and Fort Bend County to the south,
placing it in close proximity to multiple Type I facilities that offer very competitive
disposal rates. Hempstead, the county seat and largest city in Waller County, is
approximately 136 miles from Victoria. It is very unlikely that any waste from Waller
County would ever be disposed of at the Victoria Landfill.
1.1.3.19 Washington County
The City of Brenham owns and operates a transfer station. The 12,000 annual tons
from the transfer station is hauled 85 miles to the Waste Management Austin
Community Landfill. They are currently paying $13.50 per ton, including the $1.25
fee imposed by the TCEQ. The contract with Waste Management has expired, but the
City has continued to use the Waste Management Landfill.
With a distance of 119 miles from Brenham to Victoria, the City of Brenham would
need to realize a substantial decrease to the relatively low tipping fee that it is paying
at the BFI Sunset Farms Landfill. Furthermore, other landfills in the Austin or
Houston markets would also be likely to offer Brenham a reasonable rate for this
waste. R. W. Beck would not expect that it would be feasible for waste from the
Brenham transfer station to be disposed of in the Victoria Landfill.
16
17
This includes the City of Austin Type IV landfill, which closed to the public on May 1, 2006.
Converted from a compacted cubic yard rate of $6.75.
1-22 R. W. Beck
5/19/06
FINAL
Wasteshed Analysis
1.2 Summary of Opportunities
Table 1-2 summarizes the opportunities the City of Victoria may have to market the
capacity available at its landfill. R. W. Beck categorized these opportunities into three
groups:
„
Group 1 – Distance to current disposal site is generally equal or greater than
distance to Victoria Landfill (or disposal price is similar, in the case of Cuero).
„
Group 2 – Haul distance to Victoria is more, but with aggressive marketing the
waste could potentially come to the Victoria Landfill.
„
Group 3 – Waste is not likely to come to Victoria unless disposal prices are much
less than the current disposal price.
If the City, or its landfill operator, could successfully collect waste from all the
opportunities classified as Group 1, the City could increase the tonnage at the Landfill
by as much as 60,000 to 100,000 tons as existing contracts with waste haulers and
disposal locations expire. However, R. W. Beck believes it is more reasonable to
expect, as existing contracts expire over the next three to five years, the annual
tonnage at the Landfill to increase by 10,000 to 25,000 tons. This additional waste
could translate to additional revenue at the Landfill with only marginal cost increases.
Section 2 addresses the impact the additional waste may have on the Landfill’s
remaining life.
5/19/06
R. W. Beck 1-23
Section 1
FINAL
Table 1-2
Summary of Potential Opportunities to Increase Market Share
Distance (miles)
Source
Annual Tonnage
Current Disposal Site
Current Rate
Current
To Victoria
6,700
BFI El Centro, J.C. Elliott
$18-20.75 (Ton)
65
65
10,500 - 17,500
BFI El Centro, J.C. Elliott
$18-20.75 (Ton)
58
55
2 years remaining on contract
Cuero
5,000 - 8,000
Yoakum TS
$10.40 (CY)
18
28
3 years remaining on contract
Goliad
1,500 - 2,500
BFI El Centro, J.C. Elliott
$18-20.75 (Ton)
58
55
Goliad County
500 - 800
BFI El Centro, J.C. Elliott
$18-20.75 (Ton)
58
55
Hallettsville TS
800
BFI Tessman Rd
$20.50 (Ton)
120
45
700
Clean Harbors Altair
$9.75 (CY)
60
35
6,500 - 11,000
WM Covel Gardens
$25.00
120
45
Lavaca County
4,000 - 7,000
BFI Tessman Rd
$20.50 (Ton)
120
45
Refugio
2,000 - 3,500
BFI El Centro, J.C. Elliott
$18-20.75 (Ton)
45
45
N/A
BFI El Centro, J.C. Elliott
$18-20.75 (Ton)
45 [3]
45
Weimar TS
14,560 - 18,200
TDS
$7.10 (CY)
85
72
Yoakum TS
18,200 - 22,750 [2]
TDS
$7.10 (CY)
75
40
La Grange
3,500 - 6,000
BFI Sunset Farms
$18.99
65
80
Wharton
7,200
Matagorda TS
N/A
32
67
Matagorda TS
52,800
Republic Seabreeze
$7.25 (CY) [4]
38
75
Aransas County TS
Beeville
1
Jackson County TS
Karnes County
[1]
Refugio County
2
3
[1]
Information provided is for Karnes City, Falls City, Runge, and Kenedy.
[2]
Includes tonnage from Cuero
[3]
Distance to City of Refugio. Distances will varies depending on where in the County waste is collected.
[4]
This is the gate rate. Waste Management has a swap agreement in place with Republic so that actual disposal cost is lower.
1-24 R. W. Beck
5/19/06
Other Considerations
Multiple contracts, expiring 1-3 years
FINAL
Wasteshed Analysis
1.3 Disposal Pricing Summary
Table 1-3 summarizes the disposal prices and 2004 tonnages for the landfills in the
wasteshed. Except where indicated, the disposal prices represent the gate rate reported
to the TCEQ for the 2004 Annual Report and may not represent the current prices paid
by landfill customers. Although prices for certain customers are discussed throughout
the wasteshed analysis, all customers at a landfill do not necessarily pay the same rate,
depending on the individual arrangements the landfill operator has with its customers.
Table 1-3
Summary of Type I Landfills and Disposal Costs
Disposal
Disposal Price
Price per Ton Compacted Cubic Yard
2004 MSW
Tonnage
Name
County
City of Victoria LF
Victoria
$39.14
BFI El Centro Landfill
Nueces
$17.20
211,924
J.C. Elliott LF
Nueces
$28.02
427,120
Republic Seabreeze LF
Brazoria
22.75
Clean Harbors Altair LF
Colorado
BFI Blue Ridge LF
Fort Bend
$19.01
631,218
Fort Bend Regional LF
Fort Bend
$18.00
667 [2]
BFI Tessman Rd LF
Bexar
$20.50
851,111
WM Covel Gardens LF
Bexar
$25.00
1,296,804
WM Austin Community LF
Travis
$13.50
516,610
BFI Sunset Farms LF
Travis
$18.99
864,919
TDS LF
Travis
$7.10
564,991
Comal County LF
Comal
$8.00
299,660
City of Alice LF
Jim Wells
$30.00
51,882
City of Kingsville LF
Kleburg
$30.00
26,471
McMullen Landfill
McMullen
$11.79
1,020,582
[1]
$9.63
N/A
154,458
N/A
18,245
500
[1]
This disposal fee is disposal rate per ton listed in the 2003 TCEQ Annual Report.
[2]
The Fort Bend Regional Landfill is a relatively new facility and only accepted waste during a small portion of the 2004 reporting period for
the TCEQ Annual Report. The disposal amount listed is not representative of a full year.
1.4 Key Findings and Recommendations
1. All other landfills in the wasteshed have lower tipping fees than the Victoria
Landfill. In many cases, the cost per ton is in the $18 to $25 range, as compared to
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$35 to $40 at the Victoria Landfill.18 In order to be more competitive, the Victoria
Landfill would need to lower its tipping fees. It is also important to recognize that
transportation costs have a significant impact on the overall disposal costs and that
recent increases in the cost of fuel may favorably impact the City’s ability to
attract additional waste to the Landfill.
2. Much of the waste currently going to the Victoria Landfill is relatively captive
since the next closest landfill to the Victoria Landfill is approximately 90 miles
away. The City should recognize that much of the current waste stream will
continue to be disposed of at the Victoria Landfill if current market conditions
remained unchanged. 19 If current market conditions continue, the City may not
need to significantly reduce its tipping fee in order to maintain its current tonnage
amounts.
3. The Clean Harbors Landfill in Altair is in the process of obtaining a permit
modification to expand the site capacity. If successful, Clean Harbors would
likely become a serious competitor in the marketplace. This facility could affect
the Victoria Landfill’s current market.
4. BFI does not have any financial incentive to use the Victoria Landfill due to (1)
the Victoria Landfill fee structure and (2) BFI has built its business model based
on the use of its other landfills and hauling operations in Corpus Christi, Houston
and San Antonio. While BFI is collecting a significant amount of waste in the
wasteshed, this material is being disposed of at these other landfills. Due to the
existing infrastructure in place, R. W. Beck would not expect that BFI would
increase material going to the Victoria Landfill in the future.
5. Other solid waste companies (e.g., Texas Disposal Systems (TDS) and Waste
Management) are very active in the wasteshed, and would likely have a specific
interest in the opportunity to operate the Victoria Landfill.
6. The municipal collection market is primarily divided between BFI, TDS and
Waste Management. BFI appears to have the greatest market share. If another
company would become the Victoria Landfill operator, it could bring additional
tonnage to the Victoria Landfill, but it is also important to recognize that it may
take several years for market share to change due to existing multi-year municipal
collection contracts. Working with a private landfill operator likely represents the
best opportunity to increase the quantity of waste disposed in the Landfill.
7. The City of Victoria is somewhat limited in what it can do to increase the quantity
of waste going into the Victoria Landfill because it can only control the waste flow
within its jurisdiction. While the City can enter into a memorandum of
understanding (MOUs) and contracts with other entities, the City has limited
flexibility in pricing variations that it can offer customers. However, this issue can
be minimized if private solid waste companies negotiate terms with customers.
18
The City currently uses revenue generated from the Landfill to subsidize other solid waste services in
the City. The City is in the process of examining its solid waste fees, including the disposal fee at the
Landfill.
19
However, a change such as the Clean Harbors Landfill expansion could alter market conditions.
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Wasteshed Analysis
8. The Victoria Landfill procurement document should include the following
provisions:
a. Contract term should be at least 15 years to allow time for the operator to
win new municipal contracts and commercial business.
b. Financial incentives should be developed to encourage the landfill operator
to bring additional waste to the landfill. For example, the City could allow
the operator to share a greater amount of revenue (tipping fees) above
140,000 tons per year.
9. The City should change current contract terms that limit the geographic area from
which the Victoria Landfill can accept waste. Currently, the landfill can only
accept material from within the following counties: Victoria, Calhoun, Goliad,
Jackson, Dewitt, Lavaca, and Gonzales.
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