Fort Smith acknowledges improperly claimed waste recycling credits to ADEQ

It remains unclear how much, if anything, the city of Fort Smith will have to reimburse a state agency for miscalculating recycling credits.

Fort Smith officials on Thursday (June 1) acknowledged reporting waste reduction credits to the Arkansas Department of Environmental Quality (ADEQ) for materials that were sent to Fort Smith Landfill from the last quarter of 2014 through the first quarter of 2017.

According to data submitted to ADEQ by Fort Smith Deputy City Administrator Jeff Dingman, the city’s primary trip-up with reporting came amid the aftermath of former Sanitation Director Baridi Nkokheli’s termination on Dec. 7, 2015.

Up until Nkokheli’s departure, the city had shown it was due credits from ADEQ for recycling. For the last four quarterly reports of Nkokheli’s tenure — 4th quarter 2014-3rd quarter 2015 — the city did not claim 711.54 tons in waste reduction credits (WRCs – includes 139.26 tons of metal WRCs) to which it was entitled. That changed with the fourth quarter 2015 report, which was completed after Dingman — then acting city administrator — terminated Nkokheli for insubordination on an unrelated matter. The report essentially wiped out the city’s credit and placed it in deficit territory.

According to Dingman’s numbers, there were 925.43 tons in WRCs and 30.93 tons in metal WRCs claimed when there should have only been 101.65 and 30.88, respectively, for a net deficit of 823.83 overall tons. Subtract the aforementioned 711.54 tons, and the report moved the city into the red by 112.29 tons.

The next two reports would widen the gap considerably starting with the first quarter 2016 report showing 841.46 tons of WRCs claimed and 24.18 tons of metal WRCs against an actual of 56.37 tons of WRCs and 24.92 tons of metal WRCs (overall deficit of 784.35 tons). The second quarter 2016 report claimed recyclable WRCs of 835.79 tons and metal WRCs of 16.29 tons against actuals of only 21.02 tons in WRCs and 31.16 in metal WRCs (overall deficit of 799.9 tons).

The three reports account for a debt to the city of 1,696.54 tons in recycling credits. However, Dingman states in his letter to Charles Stringer of ADEQ, “We believe that this quarterly report (second quarter 2016) should not be ‘held against’ the Fort Smith Sanitation reporting, since we were following the instructions of the ADEQ representatives.”

Dingman writes of a May 6, 2016, meeting with ADEQ — also verified through an interoffice memorandum provided by terminated Fort Smith Sanitation Director Mark Schlievert — in which the ADEQ advised the city on improper reporting of its recycling program. The meeting was predicated in April 2016 by an ADEQ pamphlet received by the sanitation department, Dingman said. The pamphlet explained “the proper way that the quarterly report was to be filled out and how WRC’s were to be claimed.”

Dingman’s June 1 memo continued: “On or around April 16, 2016, the Sanitation Landfill Manager, Alan Spangler, called ADEQ and informed them that upon receiving and reading the pamphlet mailing that he realized the Fort Smith Sanitation department had been incorrectly filling out the quarterly reports for the last two quarters. Mr. Spangler requested a meeting to fully explain the situation within the Sanitation Department and to receive instructions on how to correct and proceed. The meeting was set for May 6, 2016 at 2:00PM. Those scheduled to be in attendance of the meeting were Alan Spangler – Landfill Manager, Mark Schlievert – newly hired Sanitation Director, Sara Deuster – interim Admin Coordinator, Charity Middleton – newly hired Admin Coordinator, Susan Speake – from ADEQ, and Randy Hall and Darla ? both from Sebastian County Solid Waste Management District.”

On May 5, Dingman said, Schlievert decided to pull Deuster and Middleton from the meeting. Instead, “Mr. Spangler and Mr. Schlievert drove to ADEQ offices in Little Rock and meet (sic) with two (2) ADEQ representatives, one of which was Ms. Susan Speake. During the course of this meeting, it was explained to ADEQ representatives of the recent turnover at the Fort Smith Sanitation Department and the lack of knowledge of those working now as to how to fill out the quarterly reports. However, upon receiving the pamphlet Fort Smith Sanitation Department immediately contacted ADEQ to set up the meeting to inquire as to how to correct any incorrect Quarterly reports and proceed with future ones. It was at this meeting that the Sanitation representatives were told by ADEQ representatives to complete the 2nd Qtr. 2016 report the same way as the previous two ‘incorrect’ reports had been completed and that a ‘line would be drawn in the sand’ at this time. It was decided on at this meeting that these three quarterly reports would not be held against the department due to the series of events that had recently taken place within the Fort Smith Sanitation department.”

Those events — in addition to Nkokheli’s firing — included the resignation of the department’s administrative superintendent and the terminations of the administrative coordinator and account technician, who were all gone within 60 days.

“This series of events resulted in an interim director and coordinator being appointed from the City’s Parks Department to help assist with the daily tasks of managing the Sanitation Office,” Dingman explained.

Dingman also attached three scenarios with dollar figures incorporating the $2.50 per ton amount to show what the city could end up owing or being credited back from ADEQ, depending on where the review goes from here. According to the city’s data, if ADEQ were to not forgive the improperly filled out reports, the city would owe a total of $4,355.95 for improperly claimed recycling credits. If ADEQ were to give consideration regarding the second quarter 2016 report as described in the May 6 meeting, it would take the city’s debt down to $2,319.02. If ADEQ were to forgive all three reports, the city would be owed $1,664.26 in credits.

The ADEQ is reviewing the city’s data.

“This afternoon, ADEQ did receive the requested documents regarding Waste Recycling Credits from the City of Fort Smith. After we have had a chance to review, study and evaluate them, we will be happy to get back with you,” the agency noted in a statement to Talk Business & Politics.

Link here for a timeline of events involving the recycling issue.