BUDGET - 200809

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					Berkley   Beverly Hills   Birmingham   Clawson   Ferndale    Hazel Park   Huntington Woods   Lathrup Village   Oak Park   Pleasant Ridge   Royal Oak   Troy




                                                     BUDGET – 2008/09
            ---------------------------------------------------------------------------------------------------------------------
                                                        BOARD OF TRUSTEES
                                                                2007/2008


                                Municipality                                                 Representative

                                City of Berkley                                              J. Bais-DiSessa

                                Village of Beverly Hills                                     R. Spallasso

                                City of Birmingham                                           T. M. Markus

                                City of Clawson                                              R. Haberman

                                City of Ferndale                                             B. A. Photiades

                                City of Hazel Park                                           A. LeCureaux

                                City of Huntington Woods                                     A. R. Allie

                                City of Lathrup Village                                      J. Mueller

                                City of Oak Park                                             K. Yee

                                City of Pleasant Ridge                                       S. W. Ball

                                City of Royal Oak                                            G. Rassel

                                City of Troy                                                 B. P. Murphy


                                                                  General Manager

                                                                       J. A. McKeen




     SOCRRA        3910 W. Webster Road     Royal Oak       Michigan   48073   Phone 248.288.5150      Fax 248.435.0310     Email socrra@socrra.org
                                                                       www.socrra.org
                                                        Printed on Post Consumer Recycled Content Paper
                                          SOCRRA

                                    BUDGET - 2008/2009

                                           INDEX

                                                          Page

Budget Message                                            3-7

Proposed Budget - 2008/2009                              8 - 10

Capital and Landfill Expenditures – 2008/2009               11

Comparative Statement – Revenues and Expenditures           12

Estimated Tonnages – 2008/2009                              13

Estimated Tonnage and Revenues                              14

Source of Revenue                                           15

Distribution of Expenses                                    16

Total Tonnage Handled                                       17

Operating Narrative                                      18-20

Organizational Structure                                    21




                                                2
                                                2
                                                                                 April 8, 2008



Board of Trustees
SOCRRA

Subject: Proposed Budget- 2008/2009 Fiscal Year

Board Members:

Attached for your review is the proposed budget for the fiscal year beginning July 1, 2008. This
proposed budget will be discussed at our May Board meeting. A public hearing on the budget is
scheduled for Wednesday, June 11, 2008 at 9:30 a.m. at the Troy Public Library, 510 W. Big
Beaver.

Proposed Rates
The proposed 2008/2009 budget calls for the rates from the SOCRRA member communities to
be based on the Total Service Cost that was in place for the 2007/08 fiscal year increased by
the appropriate fuel and CPI surcharges. The proposed increases are contained in the table
below and are less than those communicated to the Board in January of 2008:

      Community                 Contractor                       % Increase
      Berkley                   Tringali                         4.0%
      Beverly Hills             Car Trucking                     3.8%
      Birmingham                Car Trucking                     3.8%
      Clawson                   Tringali                         4.0%
      Ferndale                  Car Trucking                     3.8%
      Hazel Park                Tringali                         4.0%
      Huntington Woods          Tringali                         4.0%
      Lathrup Village           Tringali                         4.0%
      Pleasant Ridge            Tringali                         4.0%
      Oak Park                  Tringali                         4.0%
      Royal Oak                 Rizzo                            5.7%
      Troy                      Tringali                         4.0%

In addition, we propose to increase those rates by the same working capital surcharge that was
in place for the 2007/08 fiscal year. The surcharge allows SOCRRA to build the higher level of
working capital required under by the working capital policy established by the Board.

We are proposing to again bill each community a constant amount for the 2008/09 fiscal year,
on a twice monthly basis, that would account for the projected collection and disposal costs for
that community. The proposed cost per billing for each community is listed in the table below.
This cost includes all of the services provided by SOCRRA, which will include collection of
recyclables, refuse and yard waste as well as brush chipping for selected member communities.



                                               3
                                               3
The actual Total Service Cost will be calculated for each community at the end of the fiscal year
and a look back adjustment will be reflected in the future rates for each community.


                           2008/09 Total    Working                   Total         Cost per
  Community                 Service Cost Capital Cost          2008/09 Cost            Billing
  Berkley                      $781,116      $25,429               $806,545          $33,606
  Beverly Hills                  551,654      21,129                572,783           23,866
  Birmingham                   1,231,789      49,531              1,281,320           53,388
  Clawson                        640,934      26,597                667,531           27,814
  Ferndale                     1,441,337      48,841              1,490,178           62,091
  Hazel Park                     967,606      29,941                997,547           41,564
  Huntington Woods               311,010      13,060                324,070           13,503
  Lathrup Village                245,120        7,963               253,083           10,545
  Oak Park                     1,372,939      44,063              1,417,002           59,042
  Pleasant Ridge                 151,525        7,220               158,745            6,614
  Royal Oak                    3,917,434     122,314              4,039,748          168,323
  Troy                         3,530,806     134,790              3,665,596          152,733
                            $15,143,271    $530,878             $15,674,149         $653,090

The following rates are embedded in the Total Service Costs:

                                                                  Rate Per Ton
                                                                 2007/08     2008/09
      Municipal Solid Waste                                       $24.16      $25.49
      Yard Waste                          Leaves & Grass          $23.00      $23.69
                                          Wood Chips               10.00       10.00
      Household Hazardous Waste                                 $17/appt.   $18/appt.

      Recyclables Credit                                     Credit Per Ton
                                                            2007/08        2008/09
      Dual Stream Recyclables                                $55.00         $55.00
                                                           combined   combined rate
                                                               rate
      Separated Office Paper                                 $55.00         $55.00
      Separated Cardboard                                    $55.00         $55.00

The following rate structure, unchanged from last year, is proposed for non-members:




                                               4
                                               4
                                     NON-MEMBERS
                                                                 Rate Per Ton
                                                                2007/08    2008/09
       Municipal Solid Waste &                                   $60.00     $60.00
       Bulky Waste
       Yard Waste                    Leaves & Grass                54.00         54.00
                 Minimum Charge (1,000 lbs.)                       35.00         35.00
       Dual Stream Recyclables Credit                              15.00         15.00

Basis for the Budget
The proposed 2008/09 budget is prepared assuming that sufficient total revenue will be
generated to pay for the operating costs, capital expenditure costs, retiree health care funding
and landfill maintenance costs incurred during the fiscal year. In addition, the working capital
fee that was instituted in 2007/08 is being continued to generate the Board approved level of
working capital. The proposed budget generates a net income of $545,082, of which $530,878
is the increase in working capital.

        Landfill Maintenance Expenses Post-closure monitoring and maintenance expenses are
not included in the operating budget, but are included in the landfill, capital and retiree health
care funding budget. The total liability to handle these expenses over the 30 year post-closure
period has been included each year in our annual audit. Our auditors update this liability as
part of their annual audit process. However, we do need to generate enough cash from
operations to pay these expenses. Madison Heights and Royal Oak Twp. will contribute to the
costs of the landfill maintenance expenses through previously established mechanisms, thereby
reducing these expenses by about 10%.

Budget Assumptions
The following assumptions were used to develop the proposed budget:
   1. Union wages were increased by 3%, which is the increase contained in our recent union
        contracts, assuming the health care insurance cost increase below.
   2. Health care insurance costs were estimated to increase by 10% from their current level.
   3. Salaried wages were increased by 3%.
   4. The number of full time SOCRRA employees remains unchanged from the level of the
        2007/2008 budget.
   5. Tonnages contributed by the member communities were estimated as follows:
           a. Refuse tonnage was reduced by 2.5% from the estimated 2007/08 level.
           b. Recyclables tonnage was unchanged from the estimated 2007/08 level.
           c. Yard waste tonnage was estimated as the five year average.
           d. The reduction in refuse tonnages recognizes the continuing decline in the
               amount of refuse that we are receiving.




                                                5
                                                5
   6. Tonnage contributed by non-members was unchanged from the estimated 2007/08 level.
   7. Insurance premiums were increased as follows:
          a. Property and Liability 3%
          b. Worker’s Compensation            5%
   8. Veolia’s rates for MSW disposal and W&D’s rates for brush chipping are based on our
       contracts with the appropriate fuel and CPI escalators included for 2008/09.
   9. Collection rates for Car Trucking, Rizzo Services and Tringali Sanitation are based on
       our contracts with the appropriate fuel and CPI escalators for 2008/09.
   10. Several changes were made to the services provided to the member communities:
          a. Our curbside recycling guidelines are being revised to allow the curbside
              collection of green and blue glass and milk cartons and juice boxes and to allow
              expanded options by which cardboard can be recycled through our curbside
              collection program.
          b. We are collecting CDs, DVDs, floppy disks and VHS tapes for recycling at our
              drop-off center.
   11. An additional $100,000 was added to our post-employment health care account. We
       have been unable to fund this account as planned during the 2006/07 and 2007/08 fiscal
       years due to cash flow concerns.
   12. No revenues or expenses were assumed for any of the following:
          a. Past landfill leachate disposal invoices from Rochester Hills, which are currently
              in dispute.
          b. Any changes to any of our currently restricted funds (landfill security account,
              landfill end-use escrow).

Proposed Budget - 2008/09
Pages 8 through 10 outline the proposed Budget for the fiscal year beginning July 1, 2008. The
Budget proposal sets forth the detailed estimates of all anticipated income and expenditures.
For each cost and revenue category, the proposed budget for 2008/09, the estimated actual
expenses or revenues for 2007/08 and the 2007/08 budget are presented. Detailed month-by-
month expenditure and revenue plans are being developed for each line item in the budget.
These schedules are not included in this package.

On page 11 of the Budget is a list of proposed capital, landfill and retiree health care funding
expenditures for 2008/09 in the amount of $454,280.

Page 12 gives a comparative statement of revenues and expenditures by major category for
2008/09 and the prior four fiscal years.

Page 13 displays the estimated tonnages, by type of material and by community, that were used
to develop the 2008/09 budget.

Page 14 summarizes the projected tonnage and revenue from each member community.




                                                 6
                                                 6
The charts on pages 15, 16 and 17 show the source of revenue and expenses by major category
and the total tonnage handled for the last 8 years with estimates for 2007/08 and 2008/09.

Finally, pages 18 through 20 describe how the operations of SOCRRA will take place for
2008/09.

Following is a comparison of the proposed 2008/09 Budget with figures for the past eight fiscal
years:

                                         Total             Total            Capital           Net
Fiscal Year             Total          Revenues          Operating          Expense         Income
                        Tons                            Expenditures
Budget 2008/09           177,594        $18,636,674        $17,637,312        $454,280       $545,082
Projected 2007/08        183,450         18,029,105         17,551,662         250,000         227,443
Actual 2006/07           187,408          8,360,686          7,710,263         399,902         250,521
Actual 2005/06           196,606          7,892,992          8,016,683         305,702        -429,393
Actual 2004/05           198,880          8,380,629          7,753,059         437,550         190,020
Actual 2003/04           208,937          8,005,067          7,491,974         436,753          76,340
Actual 2002/03           209,691          8,127,601          7,079,867         323,628         724,106
Actual 2001/02           204,429          7,809,861          8,683,203         154,052      -1,027,394
Actual 2000/01           205,177          8,058,217          8,519,775         481,509        -943,067

Employees’ Retirement Plan
SOCRRA is a member of the Michigan Municipal Employees’ Retirement System (MERS). As of
December 31, 2006 (the most recent data available), the plan covering the Authority union
employees is 92% funded. SOCRRA will contribute 10.11% of union payroll to fund the
retirement plan for the fiscal year 2008/09. The salaried employees of SOCRRA are covered
under a MERS retirement plan administered through the Southeastern Oakland County Water
Authority.

Organizational Structure
Page 21 shows the organizational structure of SOCRRA, listing the number of personnel
involved in each of the operations of SOCRRA.

                                            Respectfully Submitted,



                                            Jeffrey A. McKeen, P.E.
                                            General Manager




                                               7
                                               7
                                           SOCRRA

                                       PROPOSED BUDGET

                                           2008/2009

ESTIMATED REVENUES                                     2008/2009     2007/2008      2007/2008
                                                        Budget        Estimate       Budget
Municipal Solid Waste and Yard Waste
Members                                                $15,674,149    $15,189,627   $15,037,108
Non-Member MSW                                             620,000        620,287       680,000
Non-Member Yard Waste                                       57,000         56,935        66,000
sub-total                                              $16,351,149    $15,866,848   $15,783,108

Sale of Recycled Materials
Paper                                                   $1,173,548     $1,200,000    $1,291,290
Plastics                                                   499,520        440,000       430,430
Cardboard                                                  111,000         51,000       136,955
Tin Cans                                                    89,457         78,000        39,130
Scrap Metal                                                125,000        125,000        19,565
Non-Ferrous Metal                                           45,000         28,000        19,565
Glass                                                       17,500         20,000        19,565
Batteries                                                    4,500          5,600             0
sub-total                                               $2,065,525     $1,947,600    $1,956,500

Others
Compost Sales                                              $40,000       $47,749       $28,000
Interest on Investments                                     60,000        47,252        60,000
Rental Income                                               95,000        97,389        99,156
Grant Funds                                                      0             0             0
Miscellaneous Income                                        25,000        22,267        25,000
sub-total                                                 $220,000      $214,657      $212,156

TOTAL ESTIMATED REVENUES:                              $18,636,674    $18,029,105   $17,951,764




                                              8
                                          SOCRRA

                                      PROPOSED BUDGET

                                          2008/2009

ESTIMATED EXPENDITURES
Madison Heights Transfer Station                      2008/2009     2007/2008       2007/2008
                                                       Budget        Estimate        Budget
Labor and Supervision                                     $16,000         $50,015      $20,000
Utilities                                                  32,000          42,699         2,000
Maintenance of Equipment                                   12,000          14,490       11,000
Maintenance of Building                                     2,000           2,092         3,000
Maintenance of Property & Grounds                           1,000               0             0
Supplies                                                        0               0             0
Environmental Testing                                       2,000           2,000         2,000
Hauling Yard Waste                                         36,000          34,633       85,000
Contractual MSW                                                 0               0             0
sub-total                                                $101,000        $145,929     $123,000

Troy Transfer Station

Labor and Supervision                                    $298,000       $254,619      $235,000
Utilities                                                  44,000         43,666        70,000
Maintenance of Equipment                                   80,000        107,418        25,000
Maintenance of Building                                     5,000          4,273        45,000
Maintenance of Property and Grounds                        12,000         11,931        10,000
Supplies                                                    5,000              0             0
Hauling Yard Waste                                         40,000         38,100        14,000
Contractual MSW                                         2,496,000      2,541,000     2,552,667
sub-total                                              $2,980,000     $3,001,007    $2,951,667

Material Recovery Facility

Labor and Supervision                                    $630,000       $638,450      $550,000
Utilities                                                  78,000         75,780        60,000
Maintenance of Equipment                                   65,000         63,025        80,000
Maintenance of Building                                    10,000         16,936             0
Maintenance of Property & Grounds                           6,000          5,962        15,000
Supplies                                                   42,000         41,496        68,000
Rolloff Service                                             6,000          6,150             0
sub-total                                                $837,000       $847,799      $773,000

Household Hazardous Waste
Labor and Supervision                                     $30,000        $44,331       $35,000
HHW Disposal                                              116,000        115,818        95,000
Used Electronic Equipment                                  13,000         11,219         8,000
Contractual-Disposal of Batteries                          12,000         11,580         8,000
sub-total                                                $171,000       $182,948      $146,000




                                             9
                                                     SOCRRA

                                              PROPOSED BUDGET

                                                    2008/2009

ESTIMATED EXPENDITURES
Compost Facility                                                2008/2009     2007/2008       2007/2008
                                                                 Budget        Estimate        Budget
Labor and Supervision                                              $206,000        $214,511     $206,000
Utilities                                                             6,000           6,097         6,000
Maintenance of Equipment                                            105,000         185,553       95,000
Maintenance of Building                                               4,000               0             0
Maintenance of Property and Grounds                                  48,000          48,026       38,000
Supplies                                                              3,000               0             0
Delivery of Compost                                                  40,000          38,580       45,000
Compost Reject                                                       10,000          29,939       20,000
Environmental Testing                                                 3,600           4,000             0
sub-total                                                          $425,600        $526,706     $410,000

Administrative and General
Salaries                                                          $306,512       $324,085       $314,600
Administrative and Office                                            25,000         31,060         23,000
Office Space Rental                                                  45,000         45,000         45,000
Personnel Improvement                                                 1,000            750          1,000
Travel-Conference                                                     2,000          2,811          2,000
Legal                                                                36,000         41,282         36,000
Audit                                                                12,200         11,900         11,900
Other Accounting Services                                                 0              0              0
Unemployment                                                              0              0              0
Social Security                                                      90,836         85,522         87,332
Retirement Plan                                                     159,900        150,111        155,147
Property and Liability Insurance                                    121,600        106,639        119,300
Workers Comp Insurance                                               28,700         27,256         25,000
Health Care Insurance                                               441,300        416,249        373,206
Life Insurance                                                        4,282          3,788          4,175
Permits and Bonds                                                         0              0              0
Paying Agent Fee                                                          0              0              0
Property Taxes                                                       33,500         32,517         32,300
Host Community Fee Madison Heights                                    5,900          5,733          5,700
Grant Expenses                                                            0              0              0
Recycling Education                                                  10,000         40,000         10,000
Miscellaneous Recycling                                              30,000         30,000              0
Consulting                                                           78,000         91,000         64,000
Rental Houses                                                        25,000         25,138         20,000
Miscellaneous                                                        10,000         25,361          5,000
sub-total                                                        $1,466,730     $1,496,202     $1,334,660

Collection Contract Expenses                                    $11,655,982    $11,351,091    $11,093,614

TOTAL OPERATING EXPENSES:                                       $17,637,312    $17,551,682    $16,831,941

Revenues - Expenses                                                $999,362       $477,423     $1,119,823

Capital, Landfill and Retiree Health Funding Expenditures          $454,280       $250,000      $498,600

Net Income                                                         $545,082       $227,423      $621,223




                                                        10
                                        SOCRRA

                            CAPITAL AND LANDFILL EXPENDITURES

                                        2008/2009

CAPITAL EXPENDITURES

Project                                         Location          Expense

Horizontal Grinder                              Compost Site      $100,000

Replace Front End Loader                        Troy Transfer      $30,000

Replace Front End Loader                        MRF                $50,000

Large Paper Shredder                            MRF                 20,000

Methane Remediation                             School Road         65,000

Baler Feed Conveyor                             MRF                 45,000

Forklift                                        MRF                 20,000

Refurbish Compactor No. 1                       Troy Transfer       40,000

Used Rolloff Truck                              MRF                 15,000

Sale of Used Scarabs                            Compost Site    (70,000.00)

Sale of Used Dozer                              Compost Site    (20,000.00)

                                                                  $295,000
LANDFILL EXPENDITURES

Project

Semi-Annual Monitoring                          Landfill           $14,280

Leachate Disposal                               Landfill            35,000

Maintenance                                     Landfill            10,000

                                                                   $59,280

RETIREE HEALTH CARE FUNDING                                       $100,000

TOTAL CAPITAL AND LANDFILL EXPENDITURES                           $454,280




                                           11
                                             SOCRRA

                      COMPARATIVE STATEMENT - REVENUES AND EXPENDITURES



REVENUE                         2008/2009       2007/08    2006/2007    2005/2006    2004/2005
                                   Budget       Estimate
MSW and Bulky Waste
Members                        $15,674,149   $15,189,627   $4,652,652   $4,703,711   $4,773,750
Others                             620,000       620,287      637,964      650,360      664,095
                               $16,294,149   $15,809,914   $5,290,616   $5,354,071   $5,437,845
Yard Waste
Members                                $0            $0    $1,176,214   $1,130,799   $1,053,113
Others                             57,000        56,935        65,951       76,894       60,016
                                  $57,000       $56,935    $1,242,165   $1,207,693   $1,113,129
Recyclables
Sale of Recyclables             $2,065,525    $1,947,600   $1,680,200   $1,550,054   $1,871,932
Less City Credits                       0             0     (401,527)    (469,808)    (429,517)
                                $2,065,525    $1,947,600   $1,278,673   $1,080,246   $1,442,415
Other Income
Rental Income                     $95,000       $97,389      $96,577      $90,608      $98,936
Interest on Investments            60,000        47,252       59,257       39,497       27,182
Household Waste                         0             0      149,836      111,438      113,572
Compost Sales                      40,000        47,749       39,574       33,804       37,787
Grant Income                            0             0            0            0            0
Miscellaneous                      25,000        22,267      222,837       38,711      109,763
                                 $220,000      $214,657     $568,080     $314,058     $387,240

TOTAL REVENUES                 $18,636,674   $18,029,106   $8,379,535   $7,956,068   $8,380,629

Average Income Per Ton            $104.94        $98.28       $44.71       $40.47       $42.14

TOTAL TONS                        177,594       183,449      187,408      196,606      198,881

EXPENDITURES
Madison Heights Facility         $101,000      $145,929    $1,790,740   $2,108,491   $2,213,362
Troy Transfer Station            2,980,000     3,001,007    2,984,313    2,882,086    2,892,981
Material Recovery Facility       1,008,000     1,030,727    1,019,717      999,416      830,024
Landfill-Compost Operation         425,600       526,706      533,712      564,359      436,980
Collection Costs                11,655,982    11,351,091            0            0            0
Administrative and General       1,466,730     1,496,202    1,381,781    1,462,331    1,379,712
                               $17,637,312   $17,551,662   $7,710,263   $8,016,683   $7,753,059



AVERAGE COST PER TON               $99.31        $95.68       $41.14       $40.78       $38.98




                                                12
                                       SOCRRA

                             ESTIMATED TONNAGES

                                       2008/2009



                             Grass &           Wood
City                 MSW      Leaves           Chips   Recyclables     Total

Berkley              6,409     1,055                        1,042      8,506

Beverly Hills        3,997     1,759                        1,021      6,777

Birmingham           9,700     3,601                        1,760     15,061

Clawson              5,702     2,094                          708      8,504

Ferndale            10,780     2,770                        1,045     14,595

Hazel Park           7,525     1,394                          440      9,359

Huntington Woods     2,374     1,103                        1,007      4,484

Lathrup Village      1,929      622                           195      2,746

Oak Park             9,576     3,624                          791     13,991

Pleasant Ridge       1,317      881                           276      2,474

Royal Oak           26,017     8,844                        3,136     37,997

Troy                31,013     8,502                        4,125     43,640

Member Totals      116,339    36,249               0       15,546    168,134

Non-member           8,119     1,001                          340      9,460

Total              124,458    37,250               0       15,886    177,594




                                          13
                                               SOCRRA

                                 ESTIMATED TONNAGE AND REVENUES




                                2008/2009 Proposed           2007/08*      2006/07      2005/06
             BERKLEY
              Total Tons                    8,506              8,384        9,624        8,866
              Revenue                    $806,545           $780,710     $314,379     $259,153

             BEVERLY HILLS
              Total Tons                    6,777              7,189        6,997        7,371
              Revenue                    $572,783           $552,600     $191,165     $194,533

             BIRMINGHAM
              Total Tons                    15,060             15,508      16,088       17,280
              Revenue                   $1,281,320         $1,255,165    $481,586     $496,570

             CLAWSON
              Total Tons                    8,505              8,598        9,290        9,282
              Revenue                    $667,531           $656,138     $293,316     $275,365

             FERNDALE
              Total Tons                    14,595             15,100      15,612       17,034
              Revenue                   $1,490,178         $1,450,214    $541,663     $527,799

             HAZEL PARK
              Total Tons                    9,359              9,788        9,854       10,443
              Revenue                    $997,547           $961,088     $331,079     $332,341

             HUNTINGTON WOODS
              Total Tons                    4,484              4,789        4,661        4,552
              Revenue                    $324,070           $312,120     $102,595     $100,642

             LATHRUP VILLAGE
              Total Tons                    2,746              3,076        2,946        2,776
              Revenue                    $253,083           $244,657      $93,750      $84,527

             OAK PARK
              Total Tons                    13,991             14,327      13,947       15,378
              Revenue                   $1,417,002         $1,384,336    $447,111     $470,443

             PLEASANT RIDGE
              Total Tons                    2,475              2,723        2,432        2,527
              Revenue                    $158,745           $154,935      $74,150      $72,955

             ROYAL OAK
              Total Tons                    37,998             38,958       39,829       42,674
              Revenue                   $4,039,748         $3,840,308   $1,273,269   $1,268,458

             TROY
              Total Tons                    43,639             45,738       45,501       47,004
              Revenue                   $3,665,596         $3,575,160   $1,433,019   $1,393,379

             OTHER CUSTOMERS
              Total Tons                    9,460              9,271       10,627       11,419
              Revenue                    $677,000           $720,589     $704,816     $728,234

             TOTAL
              Total Tons                   177,595            183,449      187,408      196,606
              Revenue                  $16,351,148        $15,888,020   $6,281,898   $6,204,399




*Estimated                                           14
                          SOCRRA
             SOURCE OF REVENUE - 2008/09 BUDGET*




                                                Member Communities
                 84.1%                          Non-Members

                                                Recyclables

                                                Other




                                         3.6%
                         1.2%    11.1%




*Estimated                      15
                                       SOCRRA
                           DISTRIBUTION OF EXPENSES-2008/09*


                              64.4%




                                                            VEOLIA
                                                            TRANSFER STATIONS
                                                            MATERIAL RECOVERY
                                                            COMPOST SITE
                                                            CAPITAL AND LANDFILL
                                                            COLLECTION CONTRACTS
                                                            ADMINISTRATIVE & GENERAL



                                                     8.1%




             2.5%
                    2.4%
                                             13.8%
                           5.6%
*Estimated                            3.2%   16
                                           SOCRRA
                            TOTAL TONNAGE HANDLED - 2008/09 BUDGET*


       200000




       150000
TONS




       100000




       50000




            0
                    99/00   00/01   01/02   02/03   03/04    04/05   05/06   06/07   07/08*   08/09*
                                                     FISCAL YEAR

       *Estimated                                    17
                               FY 08/09 Operating Narrative

The most significant operational changes planned for this fiscal year are as follows:
   • Green & blue glass bottles, as well as aseptic containers (food & beverage cartons, paper
      cups, drink boxes) will be added to the list of acceptable curbside collection items,
      necessitating an additional 0.5 FTE in sorting staff at the MRF.
   • A horizontal grinder is expected to be purchased and delivered to the Compost Site in
      August, allowing a complete change in yard waste processing operations.
   • Heavy Equipment Operators at the Compost Site will split the 7am-6pm shift rather than
      each working 11 hour days during the heaviest season.
   • A Maintenance Mechanic will be stationed at the Compost Site and will assist in
      operations whenever there isn’t sufficient equipment maintenance work.
   • At the end of each work day, SOCRRA staff will remove cash customer trash from the
      storage garage into the Troy Transfer Station.

Madison Heights Transfer Station
During the fall leaf season, a scale operator and loader operator will staff the facility for the
receipt of leaves from member communities. These leaves will be loaded into a contractor’s
trailer and hauled to the Compost Site. Grounds maintenance will be performed by SOCRRA’s
maintenance mechanic.

Troy Transfer Station
Approximately 125,000 tons of municipal solid waste (MSW) from member communities and
small private contractors and 300 tons of bulky scrap metal are expected to be transferred at the
Troy facility in FY 08/09. Five Utility Operators will be needed to operate the facility, with hours
of operation expected to average 7 a.m. to 8 p.m. They will also perform daily equipment
inspections and limited preventative maintenance, janitorial clean-up and other non-major building
and equipment repair work, remove cash customer trash from the garage behind the MRF for
disposal in the Transfer Station, and load out bulky scrap metal and cash customer yard waste. In
addition, a seasonal laborer will work part-time painting the inside of the facility, helping in
paving projects and doing general housekeeping. The following description of activities will be
the norm:

a) Packer trucks that arrive will be weighed in on a computerized scale (so that the annual “look
back” can be performed), given a printed ticket depicting net weight, then be directed to an area to
dump.

b) Trucks with solid waste deposit the material into either of the two compactors owned and
operated by SOCRRA, as so directed by SOCRRA staff.

c) SOCRRA staff keep 120 cubic yard rear-load compact trailers hooked to each of the trash
compactors, determine when the trailers are filled, and switch. Roughly 16 trailer loads per day are
expected to leave the SOCRRA facility for disposal at Veolia’s Arbor Hills Landfill, via a
subcontracted trucking firm hired by Veolia.

d) Trucks picking up bulky white goods/scrap metal dump adjacent to the building, outside, which
allows for SOCRRA weigh scale staff to load the material into a rolloff box spotted by the scrap
metal dealer. Refrigerators are staged at the Transfer Station and freon is removed by a private
contractor before being loaded into the scrap rolloffs.
                                                 18
Oversight is provided on a daily basis by SOCRRA’s MRF & Transfer Station Superintendent,
supplemented by Veolia’s Field Supervisor who has direct responsibility for the subcontracted
fleet of trucks and trailers.

Landfill Operations
The landfill has ceased taking in waste and closure work has been completed; thus, only limited
expenses related to routine inspections, erosion control and methane/groundwater monitoring have
been budgeted.

Compost Operations
The operation at the Compost Site is expected to consist of the following sequential activities,
beginning in July:

a) Roughly 10 packer trucks are expected to direct-haul grass clippings to the site each day. They
will dump their contents next to a row of leaves and have the weight of grass estimated by
SOCRRA staff.

b) Two SOCRRA Heavy Equipment Operators and a Foreman will work weekdays from 7 a.m. to
6 p.m. and Saturdays (expenses covered by Rochester Hills) from 8 a.m. to noon. In addition, a
seasonal laborer will work part-time pulling logs and large branches out of the loads to lessen
equipment damage, performing property and grounds maintenance, painting, and doing general
housekeeping.

c) Beginning in the middle of October and continuing thru mid-December, leaves will be brought
out to the site for shredding via the new horizontal grinder. During peak season, it is expected that
the haulers will utilize packer trucks, rolloffs and semi-trailers to deposit their leaves on the
compost pad.

d) Over winter and into spring, one Heavy Equipment Operator and Foreman will grind all of the
leaves then construct large windrow stockpiles on the pad. They will also perform equipment
maintenance with our Maintenance Mechanic, screen the finished compost and arrange for
screener reject hauling to a disposal facility.

e) Once grass season begins in 2009, loads of grass will be delivered each day and the equipment
operators will mix grass and leaves in a 1:3 ratio, moving along the huge leaf windrow stockpiles
on the pad. These windrow stockpiles will be periodically assessed via suitable decomposition
parameters and turned via frontend loader until material is sufficiently decomposed.

f) Once the composting/decomposition process has proceeded sufficiently and the material
screened, the humus will be re-located and re-formed into "curing" stockpiles, for delivery to
DPW yards after roughly 3 months of curing.




                                                 19
MRF Operations
Approximately 15,900 tons of recyclables are expected to be delivered to the Authority's MRF for
processing in FY 08/09, with another 1,000 tons from the dropoff center. Three Utility Recyclers,
two Recyclers and one SOCRRA Sorter work with sorters provided by a temp agency from 7:30
a.m. to 4 p.m., year-round. Occasionally, two Utility Recyclers and a sorter work will work the
afternoon shift to curtail overtime and to increase production efficiency. Dual-stream recyclables
will be processed as follows:

a) Recyclables collection trucks that arrive are weighed in on a computerized scale, given a
printed ticket, then proceed to the tipping areas.

b) Mixed containers (plastic bottles, clear and colored glass bottles, aseptic containers, metal
cans/scrap, miscellaneous plastic containers) are tipped inside the MRF for processing thru the
dual stream line. Five Sorters and one Recycler are utilized (in conjunction with the conveyor
magnet) to sort the various containers into the following categories: aseptics & paper, natural
HDPE (milk jugs), mixed-color HDPE, PETE, miscellaneous plastic containers & plastic bags,
large pieces of glass bottles, small pieces of glass bottles, ferrous cans, non-ferrous cans, and non-
acceptable reject.

c) Mixed paper products are tipped in a different area within the MRF. Seven Sorters and one
Recycler are utilized to sort the fiber materials into the following three categories: a) #8 grade
newspaper with magazines, office paper, junk mail and telephone books; b) cardboard, boxboard,
& brown paper grocery bags, and c) reject.

d) A Utility Recycler operates a small loader and/or the sorted recyclables silo discharge system to
feed individual items into the baler, another operates the baler and another operates a fork lift to
load the trailers delivering product to the vendors.

Supervision is provided by the MRF & Transfer Stations Superintendent who also oversees the
adjoining Transfer Station and all outdoor recycling efforts.

Special Household Waste Programs
A SOCRRA Recycler has been instructed on safe techniques for accepting the household
hazardous waste chemicals and used electronic equipment brought in on an appointment basis.
This person will also work with the public who utilize the dropoff center at the MRF.

Maintenance
Three Maintenance Mechanics are responsible for carrying out equipment maintenance and for
overseeing contractual work at all of the Authority facilities. Major items needing their attention
include: Madison Heights Facility (limited preventative maintenance on two overhead cranes and
compactor so the facility can remain in stand-by mode); Troy Transfer Station (JCB skid-steer
loader, Cat 950 loader, Cat 960 loader, Hitachi excavator, three used shuttle trucks, two
compactors, trommel screen); Landfill/Compost Site (Komatsu WA400 & Michigan L120 loaders,
Scarab turner, MCB screener, D5 dozer, DJB dump truck, new horizontal grinder); MRF
(Komatsu WA95 loader, Komatsu forklift, fiber sorting conveyor system, container sorting
conveyor system, baler feed conveyor, baler & wire strapper).




                                                  20
   SOCWA/SOCRRA ORGANIZATIONAL STRUCTURE



                                                 General Manager




                                    Accountant/ Treasurer    Executive Assistant




                                      Accounting Clerk/           Receptionist
                                      HR Administrator




 Authority Engineer                              Operations Director




                Chief Operator   Mechanics (3)                   Supervisor –                         Compost
                                                               Transfer Stations                     Supervisor




Maintenance Supervisor     Water Operators         MRF Employees                  Troy Trans.    Compost Employees
                                 (11)              (8) + temporary               Employees (5)          (2)




    Maintenance
    Operators (3)




                                                             21