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Audit - 2005 SW Report KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT BUREAU OF WASTE MANAGEMENT Solid Waste Form 1290 CHIEF FINANCIAL OFFICER'S LETTER FROM LOCAL GOVERNMENT COPy To: Kansas Department of Health and Environment Attn: Bureau of Waste Management I am the Chief Financial Officer of _City of Salina a local government organized and existing under the laws of the state of Kansas. This letter is in support of this local government's use of the local government financial test to provide financial assurance for the closure, post-closure care, corrective action costs, or any combination of these, at the municipal solid waste landfill identified in the following numbered paragraphs. 1. This local government is the owner or operator of the following municipal solid waste landfill for which financial assurance for closure, post-closure care, corrective action costs, or any combination of these, is demonstrated according to the provisions in KAR. 28-29-2110: City of Salina Municipal Solid Waste Landfill 492 Burma Road Salina, KS 67401 Permit No. _144_ Closure $_2,493,012 Post-Closure $_3,558,922_Corrective Action $_N/A [List additional sites and estimates on a separate sheet identified as "Attachment An] 2. This local government also provides financial assurance for environmental obligations, or provides environmental guarantees, to another local government entity through a financial test procedure at the following site and jurisdiction (if none, enter "None"): None Permit No. Corrective Action $_N/A Closure $_N/A_Post-Closure $_N/A Jurisdiction [List additional sites, estimates and jurisdictions on a separate sheet identified as "Attachment Bn] Page 1 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999 This local government financial test is based upon the financial conditions existing as of the close of the latest completed fiscal year ending on 12/31/2005 The accounting books and records of this local government are maintained according to the requirements of generally accepted accounting principals (GAAP) for governments, or on a prescribed basis of accounting that demonstrates compliance with the cash basis and budget laws of the state of Kansas, which is a comprehensive basis of accounting other than GAAP for governments. In support of this local government's use of financial test, I enclose the following documents: (a) Comprehensive Annual Financial Report (CAFR), or other audited Annual Financial Statements for the latest completed fiscal year; (b) Auditor's Special Report; and (c) Calculation and accumulation details supporting financial test amounts derived from the CAFR or other audited annual financial statements. I certify that this local government: (a) Has no general obligation bonds outstanding which are rated lower than Moody's Baa or Standard & Poor's BBB; (b) Is not currently in default on payments of interest or principal on any general obligation bonds; (c) Has not operated at a deficit exceeding 5% in each of the two latest completed fiscal years; (d) Has passed the financial ratio test or the bond rating test specified for the use of local governments according to the provisions in KAR. 28-29-2110; and (e) Has not used the local government financial test to provide financial assurance for closure, postclosure, corrective action costs, or any combination of these, in excess of 43% of revenues as defined in K.A. R. 28-29-2110. SIGNED FOR THE LOCAL GOVERNMENT /S/ Name Title Date Page 2 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999 KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT BUREAU OF WASTE MANAGEMENT LOCAL GOVERNMENT FINANCIAL RATIO TEST Sum of the Environmental Obligations Assured by the Test 1. Total from the Chief Financial Officer's Letter $_6,051,934 Ratio Test Factors from the CAFR or Annual Financial Statements [Attach details of calculation or accumulation of amounts from CAFR or AFS] 2. 3. 4. 5. 6. 7. Total Annual Revenues Total Annual Expenditures Cash plus Marketable Securities Annual Debt Service Long-Term Debt (Issued in the Current Year) Non-Routine Capital Expenditures $_56,327.837 $_45,732,003 $_22,677,523 $_4,247,156 $_4,710,000 $_14,112,269 [Omit Lines 6 and 7 if GAAP for Governments accounting and reporting method is used] Financial Ratio Test Calculations 8. Environmental Obligations I Total Annual Revenues _.1074 (Line 1 divided by Line 2 = < 0.43) 9. Total Annual Revenues I Total Annual Expenditures 1.2317 (Line 2 divided by Line 3 = > 0.95) 10. Cash and Marketable Securities I Total Annual Expenditures _.4959 (Line 4 divided by Line 3 = > 0.05) 11. Annual Debt Service I Total Annual Expenditures _.0929 (Line 5 Divided by Line 3 = < 0.20) 12. Long-Term Debt I Non-Routine Capital Expenditures (Line 6 divided by Line 7 = < 2.00) [Omit Line 12 if GAAP for Governments accounting and reporting method is used] Page 3 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999 KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT BUREAU OF WASTE MANAGEMENT LOCAL GOVERNMENT BOND RATING TEST Sum of the Environmental Obligations Assured by the Test 1. Total from the Chief Financial Officer's Letter $_6,051,934 Ratio Test Factors from the CAFR or Annual Financial Statements [Attach details of calculation or accumulation of amounts from the CAFR or AFS] 2. 3. Total Annual Revenues Total Annual Expenditures $_56,317,837 $_45,732,003 Bond Rating Test Calculations 4. Environmental Obligations / Total Annual Revenues (Line 1 divided by Line 2 = < 0.43) _.1074 5. Total Annual Revenues / Total Annual Expenditures (Line 2 divided by Line 3 = > 0.95) 1.2317 Bond Rating 6. Amount, Description, Issue Date and Due Date of Rated General Obligation Bonds_ _$885,000 in General Obligation Internal Improvement Bonds _Series 2006-B, Issued 8/01/06, Final Due Date 10/1/2021 7. Currently Assigned Bond Rating Aa3 8. Rating Agency [Attach written evidence of the current bond rating] _Moody's Page 4 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9, 1999 CERTIFIED PUBLIC ACCOUNT ANTS David A. Lowenthal, CPA Thomas E. Singleton, CPA Patricia L. Webb, CPA Thomas G. Wilson, CPA Audrey M. Odermann, CPA LOWENTI-IAL SINGLETON WEBB & WILSON PROFESSIONAL ASSOCIATION 900 Massachusetts, Suite 301 Lawrence, Kansas 66044-2868 Phone: (785) 749-5050 Fax: (785) 749-5061 E-mail: Iswwcpa@lswwcpa.com Abram M. Chrislip, CPA Leanne E. Miller, CPA Members of American Institute and Kansas Society of Certified Public Accountants Independent Accountant's Report on ApplvinQ AQreed Upon Procedures Mayor and City Commission City of Salina, Kansas We have performed the procedures enumerate below, which were agreed to by the City of Salina, Kansas, solely to assist you in meeting the requirements of the Kansas Department of Health and Environment (KDHE), as specified in KAR. 28-29-2110, for the year ended December 31,2005. This agreed upon procedures engagement was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures that we performed were as follows: 1. We compared amounts and tested the computations to determine that the amounts for total annual revenues, total annual expenditures, cash plus marketable securities, annual debt service, long-term debt issued in the current year, and non-routine capital expenditures, as stated in the Financial Ratio Test section of the chief financial officer's letter dated October 13, 2006, were derived from the audited annual financial report of the City of Salina, Kansas, for the year ended December 31,2005, and were adjusted according to the definitions in KAR. 28-29-2110(b). 2. We tested the computation of the ratios stated for liquidity and debt service and the use of funds in the Financial Ratio Test section of the chief financial officer's letter dated October 13, 2006, and found them to equal or exceed the requirements of K.A.R. 28-29-2110(c)(2). 3. We tested the computation of the ratio of total operating revenues to total operating expenditures, and the ratio of the sum of closure and post-closure costs to total operating revenues, and found them to equal or exceed the requirements in KAR. 28-29-211 0(c)(5)(C) and KAR. 28-29-211 0(f)(1 )(A) or (8). 4. We noted compliance with KAR. 28-29-211 0(c)(3) in the preparation of the annual financial statements of the City of Salina, Kansas, for the year ended December 31, 2005, in conformity with generally accepted accounting principles for local governments. 5. We noted compliance with KAR. 28-29-211 0(c)(5)(D) in that the report of independent certified public accountants dated May 12, 2006, included a statement to the effect that the basic financial statements for the year ended December 31, 2005, "present fairly, in all material respects," the transactions and balances of the City of Salina, Kansas, on the basis of accounting described. We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the City of Salina Chief Financial Officer's letter to KDHE dated October 13, 2006. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is solely for the use of the City of Salina, Kansas, and KDHE, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. d~/-L,~J ~~Uk.W Professional Association October 13, 2006 Expenditures Total Expendrtures from the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances (Statement 2) Less Specifically Identifiable Capital Outlays Net Governmental Funds Expenditures 2005 2005 Capital Special Projects General Fund Revenue Funds Debt service Fund fund 22,767,514 $ 828,996 $ 3,026,314 o 11,125,587 2,625,925 21,938,518 8,499,662 $ 3,026,314 From the Combined statement of Revenues, Expenses and changes in Retained Earnings Enterprise (Statement 4): Funds Total Operating Expenses of Enterprise Funds before depreciation Total Non-operating revenues (net) of Enterprise funds (if negative) Total Non-operating revenues {net} of Internal Service funds (if negative) Internal Service funds $ 13,005,767_ (738,258) Total Expenditures Net Proprietary Funds Expenditures/Expenses $ 12,267,509 $ Revenues From the Combined Statement of Revenues, Expenditures, and Changes In Fund balance (Statement 2) Total Revenues, Governmental Funds 22,813,723 11,977,906 2,794,948 805,419 805,419 $ 38,391,996 22,813,723 11,977,906 2.794,948 From the Combined statement of Revenues. Expenses and changes in Retained Earnings Enterprise (Statement 4) Funds Total Operating Revenues of Enterprise Funds Total Non-operating revenues (net) of Enterprise funds (if positive) Total Non-operating revenues (net) of Internal Service funds (if positive) Total Proprietary Fund Revenue Total Revenue all funds Current Operating Balance Cash and Current Investments General Fund Special Revenue Funds Debt Service Funds Enterprise Funds Internal Serv ice Funds Total Cash and Investments: Ratios and Misc. Information for 2000 1.(a) Sum of closure costs assured by financial $ 1.(b) Sum of post-closure costs assured by fine: $ 1. c Sum of closure and post-closure costs as~ $ Internal Service funds $ 17,877,858_ 57,983 $ 17,877,858 57,983 2005 2,734,298 4,867,538 1,225,975 11,486,833 2,362,879 22,677,523 IA Alternative 18 II Selected Alternative $ 2,493,012 $ 3,558,922 $ 6,051,934 2,493,012 $ 3,558,922 $ 6,051,934 $ 2,493,012 3,558,922 6,051,934 2. Total Revenues $ 56,327,837 $ 56,327,837 $ 56,327,837 3. Total Expenditures $ 45,732,003 $ 45,732,003 $ 45,732,003 4. Cash and Current Investments $ 22,677,523 $ 22,677,523 $ 22,677,523 5. Debt Service on Long Term Debt (From Sta $ 4,247,156 $ 4,247,156 $ 4,247,156 6. Capital Expenditures $ 14,112,269 $ 14,112,269 $ 14,112,269 7. Long term Debt issued $ 4,710,000 $ 4,710,000 $ 4,710,000 Closure/Post Closure as a percent of revenue (Line 1c1Une 2) (Must be less than 43%) 10.74% 10.74% 10.74% Revenues divided by expenditures greater than .95 123.17% 123.17% 123.170/, Cash divided by Expenditures greater than 5% 49.59% "~. Debt Service divided by total expenditures less than 20% 9.29% 9.29% Is long term debt divided by Capital less than - 20 0.33 solid waste financial assurances breakeven Totals $ 36,919,415 $ 3,454,921 $ 33,464.494 $13,005,767 (738,258) $ 12,267,509 $ 45,732,003 $ 17,935,841 $ 56,327.837 $ 10.595.834 10/24/2006 CDM 345 Riverview, 5uite 520 Wichita, Kansas 67203 tel: 316660-6700 fax: 316264-3025 May 10, 2006 Mr. Michael Fraser General Services Director Director of Public Works City of Salina 412 East Ash Street Salina, KS 67401 Subject: 2006 Closure and Post-closure Cost Estimates Dear :tvrr. Fraser: Attached is Camp Dresser & McKee Inc.'s (CDM) estimate of 2006 Closure and Post-closure costs for the City of Salina Municipal Solid Waste Landfill (MSWLF), KDHE Permit #144, The attached forms were provided by KDHE and are required in all submittals related to financial assurance plan updates and operating permit renewals. Specifically, these should be submitted to KDHE by June 1,2006. Please call me at (316) 660-6700 if you have any questions regarding these costs. Very truly yours, ~~ ~;(;It~ Client Officer Camp Dresser & McKee, Ine. Danita S. Boettner, P.E. Project Engineer Camp Dresser & McKee, Ine. cc: Bob Helm (City of Salina) Chris Martel (CDM) P:ISalina150988 - 2006 ServlceslTask 2 - Closure Cost Prep12006salina cost.doc consulting. engineering. construction. operations CLOSURE COST ESTIMATE WORKSHEET FOR MSW LANDFILL FORM 1 OWNER: City of Salina. KS PERMIT NO. 144 CURRENT RENEWAL YEAR: 2006 Total Volume of Site: 24.114.000 CU. YDS. TOTAL PERMITTED DISPOSAL AREA: 280 ACRES CONVERSION FACTOR: 4840.02 SQ. YDS./ACRE AREA CURRENTLY OPEN: 29 ACRES CONVERSION FACTOR: 0.3333 YDS.lFT. LARGEST AREA TO EVER BE OPEN AT ANY TIME: 29 ACRES (use this area for estimating closure costs) I ITEM I QUANTITY I UNITS I UNIT COST I COST I SUBTOTALS I Low Permeability Soil Layer Preparation oflandfillto receive cover (final grading) 29 ACRE 5 53.75 51,559 General fill to reach surrounding grades 112933 CU. YD. 51.77 $199,892 Clay-compacted, off-site N/A CU. YD. $ 10.63 $ N/A lay-compacted, on-site 70,180 CU. YD. $ 5.67 5397,921 Low Permeability Soil Layer Subtotal $599,371 Geomembrane and Drainage Layer Drainage material - sand 46,787 CU. YD. $ 11.00 5514,653 ". Drainage material - geogrid N/A SQ.YD $ 4.18 $ N/A Geomembrane 140,360 SQ. YD. $ 3.90 $547,404 Geomembrane and Drainage Layer Subtotal $1,062,057 Protective Soil (Veeetative) Layer Soil--off-site N/A CU. YD. $ 5.20 $ N/A Soil-on-site 58,483 CU. YD. $ 1.77 $103,516 Seeding and mulching 29 ACRE $ \,500.00 543,500 Protective Soil (Vegetative) Layer Subtotal $147,016 Erosion Control Terraces 7,600 Lin. FT. $ 0.s5 $4,180 Grass ditching/channels 3,000 Lin. FT $ 9.00 527 ,000 Riprap ditching/channels N/A Lin. FT $ 13.00 $ N/A Erosion Control Subtotal $31,180 Gas System Gas vents, 29 # of vents, 50' average depth I 1450 I Lin. FT. I $ 65.001 594,250 I Passive System Passive well head t1are I 29 I EACH I 5 500.001 514,500 I Active System Flare, BTU/hour N/A I EACH N/AI 5 N/A 4.ncillary gas equipment N/A I Lump Sum N/Al 5 N/A [;as System Subtotal $ 108,750 Professional Services Engineering (Bid Documents) 1 Lump Sum 5 82,000.00 582,000 opographic and Boundary Survey I Lump Sum $ 10.000.00 510,000 Engineering (Construction Oversight) I Lump Sum 5 226,000.00 $226,000 Professional Services Subtotal $318,000 Total Closure Cost Subtotal $2,266,374 Miscellaneous 10% Administration and Contingency (Total Closure Cost Subtotal x 10%) $226,637 Misc. Subtotal $226,637 TOTAL CURRENT CLOSURE COST $2, Contact Person/Cost Estimate Prepared By: Phone Number: 316-660-6700 Danita S. Boettner P.E. Camo Dresser & McKee Inc. last edit date: May 9, 2006 dsb Note: Fonms 1. 2. and 3 must be submitted at the time of renewal. POST-CLOSURE COST ESTIMATE WORKSHEET FOR SMALL ARID MSW LANDFILL FORM 2 OWNER:_City of Salina, KS PERMIT NO._144_ CURRENT RENEWAL YEAR:_2006 Total Volume of Site:_24,114,OOO CU. YDS. TOTAL PERMITTED DISPOSAL AREA:_280 (use this area for estimating post-closure cost) ACRE:: CONVERSION FACTOR: 4840.02 SQ. YDS.lACRE CONVERSION FACTOR: 0.3333 YDS.lFT. ITEM I QUANTITY I UNITS I UNIT COST I COST I su Cover Repair for 5% of the Landfill Area 5% of the landfill area.l1-Acres Soil-off-site N/A CU.YD. I $ 5.201 $ N/A Soil--on-site 22,587 CU.YD. I $ 1.771 $39,979 Cover Repair Subtotal $39,979 Seeding (Reseed 5% of the Landfill Area) 5% of the landfill area.l1-acres Seeding and mulching 14 I ACRE I $ 1,500.001 $21,000 I Seeding Subtotal I I $21,000 Leachate Collection generation rate 12 800 2al.laclyr. ( 588,800 gaVyr) I Operation and maintenance of leachate collection system N/A yr. N/A $3,000 Leachate hauling distance 2 miles, 196 # trips/year' 196 trip $100 $19,600 Leachate treatment 588,800 gal. $ 0.0024 $1,413 Leachate management and rreatment on site N/A Lump Sum $ 1,000.00 $N/A Leachate sampling 1 trip $ 500.00 $500 Leachate analysis 1 event $ 500.00 $500 Leachate Collection Subtotal $25,013 Landfill Gas Monitorinl!. Quarterly methane monitoring at site boundary I 4 I event I $ 1,250001 $5,000 I Landfill Gas ""onitoring Subtotal 1 I $5,000 Landfill Gas Extraction System Reinstallation of methane vents (I % of the total system length/yr.) 48 I Lin. FT. I $ 65.001 $3,120 Operation and maintenance of gas extraction system N/A I Million CU. FT. I NiAI $ NiA Landfill Gas Extraction System Subtotal $3,120 Groundwater Monitoring 18 # wells in the approved system (no additional wells sampled annually) Sampling personnel labor (2 events/year min.) 80 hr. $ 35.00 $2.800 Sample event mobilization (2 evencs/year min.) 200 mile $ 0.40 $80 nalytical costs (2 events/year min.) 36 sample S 220.00 $7,920 Monitoring well maintenance 18 well $ 13.00 $234 V1onitoring well replacement (662 totallin. ft. of all groundwater wells) 22 well S 10000 $2,200 Groundwater Monitoring Subtotal $13,234 Inspections and Recordkeepinl( Inspections and recordkeeping I 1 I Lump Sum S SOO.OO $500 I Inspections and Recordkeeping Subtotal I ql Remedial System Operations Remedial systcm operations NiA I Lump Sum NiA $ NiA sl~1 Remedial System Operations Subtotal I Estimated Annual Post-Closure Cost (sum of all subtotals above) Administration and Continl(ency dministration and Contingcncy (Total Estimated Post-Closure Cost x 10% I I $10,78S Administration and Contingcncy Subtota 510,785 TOTAL ESTIMATED ANNUAL POST-CLOSURE COST $118,631 ESTIMATED 30 YEAR POST-CLOSURE COST Annual x 30 $3,558,922 Contact PersoniCost Estimate Prepared By: Phone Number: 316-660-6700 Danita S. Boettner P.E. Camp Dresser & McKee Inc. I No leachate collection system in original landfill; annual leachate collection calculated for Cells I through 4, approximately 46 acres. 2 Leachate hauled in quantities of 3,000 gal/trip. Last edit date: May 9, 2006 dsb Note: Forms 1, 2, and 3 must be submitted at the time of renewal. ESTIMATED LIFE WORKSHEET FOR SMALL ARID MSW LANDFILL FORM 3 OWNER:_City of Salina, KS PERMIT NO._ 144 YEAR: 2006 CONVERSION FACTOR: 4840.02 SQ. YDS./ACRE CONVERSION FACTOR: 2000 LBS./TON CONVERSION FACTOR: 0.3333 YDS./FT. Landfill Site Data QUANTITY UNITS Total Site Area 640 ACRES Total Area Permitted to Receive Waste 280 ACRES Total Area Currentlv ODen 29 ACRES Total Area That Received Final Cover 83 ACRES Identify Cells That Received Final Cover by Name or Phase AREA UNITS 1. Name or Phase: Original (Non-Subtitle D) Area 62 ACRES 2. Name or Phase Cel! I and Portion ofCel! 2 17 ACRES 3. Name or Phase ACRES 4. Name or Phase ACRES Life of CellI Landfill Data QUANTITY UNITS Annual Average Tonnage Received (A) I 88.097 Tons Averaee Compacted Densitv of Waste (8) 944.5 Ibs/CU. YD. I Soil-to-Waste Ratio (C) 2 0.167 I Calculation for Annual Volume I QUANTITY I UNITS I Average Annual Volume (CU. YDS.) - [(A x 2000)/B1 x (1 + q 217,700 CU. YDS. Total Volume Capacity of Orieinal Site 24,144,000 CU. YDS. Total Remainine Volume Capacity of Site 17,965,114 CU. YDS. Remaining Life of Landfill 83 YEARS Contact Person/Cost Estimate Prepared By: Danlta S. Boettner P.E. Camp Dresser & McKee Inc. Phone Number: 316-660-6700 1 Based on actual 2005 quantity of waste received and airspace consumed. 2 Soil used for daily and intermediate cover occupies landfill airspace. The soil-to-waste ratio accounts for the landfill space occupied by soil. Most soil-to-waste ration estimates range from 1:3 (33%) to I: 10 (10%). KDHE recommends 1:6 (16.7%). Last edit date: May 9, 2006 dsb Note: Forms 1, 2, and 3 must be submitted at the time of renewal.