Assembly approves $2.52 million for scoping and design of central recycling facility after debate over costs and diversion targets

The Fairbanks North Star Borough Assembly on Jan. 29 approved an appropriation of $2,520,000 from the Solid Waste Disposal Enterprise fund to cover scoping and design for a central recycling facility (CRF), after public testimony that ranged from technical support to skepticism about long-term program sustainability. The roll-call vote was 7–0.

Solid-waste staff explained the request is for professional scoping, engineering and design work to transition existing borough cold-storage capacity into an operational recycling facility co-located near the landfill. The administration said the funding was placed in the borough’s capital improvement plan and that scoping costs reflected an original plan that anticipated a new building; staff said scoping for reuse of an existing structure may reduce final design costs.

"We operate the current CRF and are well aware of the limitations," Joe Torma, general manager for Green Star (the current CRF operator), told the assembly. He said the present facility’s small footprint limits storage and processing, and that a higher‑capacity baler and more covered commodity storage would allow the borough to ship purer, larger loads and capture higher per-ton commodity prices.

Opponents at public hearing raised concerns about whether recycling in Interior Alaska can be economically sustained. Shelly Shoup said scoping and design costs of $2.52 million ‘‘feel like an incredible amount’’ for planning and urged caution. Other speakers urged that scoping should explicitly evaluate local reuse options such as expanded composting, transfer-site sorting, and other local processing that could reduce transport costs.

Solid-waste analysis presented during debate stressed the importance of the diversion rate — the share of material kept out of the landfill — to long-term economics. Managers said the borough’s current diversion rate for regular recyclables is roughly 0.7% (about 824 tons per year) and that, over eight years, roughly 5,000 tons have been diverted. Staff and the landfill manager told the assembly that reaching a substantially higher diversion rate (a 10% target was discussed) could materially extend landfill life and, when combined with disciplined reserve planning, produce net financial benefits that justify the program investment.

The assembly emphasized oversight: administration representatives said design contracts include construction-administration and bid-support services and that unused scoping/design funds would roll into later project phases or back into the project account. The appropriation will be paid from the solid-waste enterprise fund (tipping‑fee revenues and enterprise reserves) rather than the borough’s general fund.

The assembly also advanced several FAST and service‑area paving projects and adopted a multifamily housing tax-incentive ordinance in the same meeting.

Sources: staff reports, testimony from Green Star and Solid Waste staff, and public testimony at the Jan. 29 assembly meeting.