Staff Report

1 IN CONSIDERATION OF RESOLUTION NO. 26-5646, FOR THE PURPOSE OF ADVANCING PLANNING AND DESIGN OF METRO WEST COMMUNITY DROP-OFF DEPOT AND ENDORSING OPTION B, OPTIMIZED DEPOT CONCEPT Date: September 24, 2026 Department: Waste Prevention & Environmental Services Meeting Date: October 1, 2026 Prepared by: Estee Segal Presenters: Marta McGuire, WPES Director; Heidi Bertman, System Planning and Development Program Director; Estee Segal, Principal Planner Length: 5 minutes ISSUE STATEMENT The Regional System Facilities Plan, adopted by Metro Council in March 2025, identifies development of a community drop-off depot in western Washington County as a priority investment to improve access to reuse, recycling and waste services. Consistent with the plan, Metro has completed initial conceptual planning for a depot at the Metro-owned property in Cornelius. Staff developed and evaluated two concepts for the permanent depot. Option A (Compact Depot) provides the core services identified in the System Facilities Plan within a smaller facility footprint and at a lower estimated cost. Option B (Optimized Depot) provides the same core services with additional space and flexibility to support reuse, education, community partnerships and future programming as needs evolve. Staff evaluated the concepts based on facility size, programming, operational needs, flexibility and cost, and gathered input from partners and the Regional Waste Advisory Committee. Based on this analysis and engagement, staff recommend advancing Option B as the preferred concept for the permanent depot. Council direction on the preferred concept will allow staff to proceed with the next phase of planning and design. ACTION REQUESTED Approve Resolution 26-5646, endorsing Option B, Optimized Depot Concept, to be further planned and designed for the development of the Metro West Community Drop-Off Depot. IDENTIFIED POLICY OUTCOMES The Regional System Facilities Plan establishes a long-term investment strategy for the region's reuse, recycling and garbage infrastructure and is grounded in the values and goals of the 2030 Regional Waste Plan. Metro Council identified three priority outcomes to guide implementation of the System Facilities Plan and future facility investments: • Waste reduction: New facilities and programs should reduce waste and the amount of material sent to landfill. • Increased access: Improve the quality of, and access to reuse, recycling and garbage services across the region. • Affordability: Maintain affordable services and consider the cost impacts of system investments on residents and businesses. The Cornelius community drop-off depot is intended to advance these outcomes by addressing an identified geographic gap in public services while expanding opportunities for reuse, recycling, household hazardous waste collection and self-haul garbage services. POLICY QUESTIONS Does Council support advancing Option B as the preferred concept for the permanent Cornelius community drop-off depot and proceeding with the next phase of planning and design? 2 POLICY OPTIONS FOR COUNCIL TO CONSIDER 1) Endorse Option B –Direct staff to proceed with the next phase of planning, design and engineering, including development of the appropriate procurement approach. 2) Request Additional Concept Development – Direct staff to conduct additional conceptual planning or pre-design work to further refine or evaluate the depot concepts before proceeding to the next phase of design and engineering. 3) Select a Different Concept or Provide Additional Direction – Direct staff to advance a different depot concept or provide additional direction regarding facility size, programming, phasing, site utilization or other elements before proceeding with further design. BACKGROUND AND REGIONAL NEED Metro purchased an approximately 12-acre property in the Cornelius industrial area in 2020 as part of a strategy to address a long-standing gap in public garbage and recycling services in Washington County. A full-service transfer station was initially considered for the site based on the perceived lack of public services on the west side of the region. Before proceeding with development, Metro Council directed staff to take a broader look at regional facility needs, the distribution and capacity of public and private facilities, and Metro's long-term role in providing garbage and recycling services. That direction led to development of the Regional System Facilities Plan, informed by regional data analysis, scenario modeling and community and stakeholder engagement. The System Facilities Plan found that the region has sufficient capacity to manage commercial wet waste. The Forest Grove Transfer Station, approximately three miles west of the Cornelius property, currently transfers approximately 74,000 tons of wet waste annually and has additional available capacity. In contrast, the plan identified significant gaps in access to services for residents and other public customers, particularly in Washington County and east Multnomah County. Depending on where they live, residents and small businesses can face significant differences in travel time and cost when seeking services for recyclables, household hazardous waste, self-haul garbage, bulky items and reusable materials. To address these gaps, the System Facilities Plan established a strategy to develop a network of community drop-off depots across the region. These facilities are intended to provide convenient access to reuse, recycling, household hazardous waste and self-haul garbage services without duplicating commercial wet-waste transfer capacity that already exists within the regional system. The plan identifies development of a community drop-off depot in Washington County as a Phase 1 priority. A depot at the Cornelius property is estimated to improve access to services for nearly 120,000 residents. DEVELOPMENT APPROACH Metro is pursuing a phased approach to development of the Cornelius property. The first phase is an interim depot on approximately one acre of the property focused on providing household hazardous waste services while planning, designing and permitting for the permanent facility continue. The permanent community drop-off depot would provide a broader range of services, including reuse, recycling, household hazardous waste and self-haul garbage services. Staff and a consultant team have spent approximately six months evaluating the Cornelius site and developing permanent depot concepts that can provide the services identified in the System Facilities Plan while responding to zoning, land-use, site, operational and other jurisdictional requirements. The conceptual planning process included coordination with City of Cornelius staff, including the Development Director and City Engineer, as well as Metro operations staff. This work 3 informed considerations such as site circulation, traffic, facility programming, operational functionality and future development of the property. CONCEPTS CONSIDERED Staff developed and evaluated two permanent depot concepts: a Compact Depot and an Optimized Depot. Both concepts are intended to provide the core services identified in the Regional System Facilities Plan but represent different approaches to facility scale, site utilization, programming and long-term flexibility. Consideration Option A- Compact Depot Option B- Optimized Depot Overall approach Smaller permanent depot with a more compact facility footprint Larger permanent depot with additional space and flexibility Core services Provides core reuse, recycling, household hazardous waste and self-haul services Provides core reuse, recycling, household hazardous waste and self-haul services Reuse and waste reduction Provides opportunities for reuse and material recovery within a smaller footprint Provides additional flexibility for reuse, repair, material recovery and future programming Future flexibility More limited space to accommodate future programs or changing service needs Greater ability to adapt to future programs, partnerships and changing service needs Site utilization Uses less of the property and preserves more industrial land for other potential uses Uses a larger portion of the property to support expanded programming and operational flexibility Construction cost Lower relative construction cost; current rough-order-of-magnitude estimate of approximately $17 million Higher relative construction cost; current rough-order-of-magnitude estimate of approximately $23 million Primary tradeoff Lower cost and smaller footprint, with less flexibility for future programming Greater initial investment and site use in exchange for increased flexibility and long-term service potential STAFF RECOMMENDATION AND RATIONALE Staff recommends advancing Option B, the Optimized Depot, as the preferred concept for the permanent Cornelius community drop-off depot. While Option B requires a larger initial investment and uses more of the Cornelius property than the Compact Depot, staff believe it provides stronger long-term value and better supports the outcomes established in the Regional System Facilities Plan. The recommendation is based on the following considerations: • Access and service delivery: Option B provides sufficient space and operational capacity to deliver the range of reuse, recycling, household hazardous waste and self-haul services envisioned in the System Facilities Plan. • Waste reduction and reuse: The larger concept provides greater flexibility to incorporate reuse, repair, material recovery and partnerships that could further reduce the amount of material sent to landfill. • Long-term flexibility: Solid waste services and material streams will continue to change over the life of the facility. Option B provides greater ability to accommodate new programs, partnerships and service needs without requiring significant future expansion or redesign. • Operational functionality: The concept provides additional flexibility for customer circulation, material handling and facility operations, thereby increasing safety at the facility, as the project moves into detailed design. 4 • Long-term community benefit: The additional space creates greater potential for partnerships, education, community uses and other programming consistent with the System Facilities Plan's long-term vision. Staff recognize the importance of balancing these benefits against affordability, construction cost and the use of industrial land. On balance, staff believe the additional flexibility and long-term service potential of Option B justifies advancing the concept through the next phase of design and engineering. Council endorsement of Option B would establish the preferred concept for purposes of continued project development. It would not constitute approval of final design, final project cost, bond issuance or construction. FINANCIAL AND FUNDING CONSIDERATIONS The consultant team developed rough-order-of-magnitude construction cost estimates for the interim and permanent facilities based on the current conceptual level of design. The interim depot is currently estimated to cost approximately $3 million in 2026 dollars to construct. Staff anticipate funding the interim depot through WPES revenues and reserves on a pay-as-you-go basis. Funding for the interim depot is included in the FY27 adopted and capital improvement plan. Option B, the Optimized Depot, is currently estimated to cost approximately $23 million in 2026 dollars to construct. Staff anticipate financing construction of the permanent facility through issuance of revenue bonds when the project has advanced sufficiently through design, permitting and project development to be ready for construction. These estimates are preliminary and will be refined as design and engineering progress, project risks are better understood, and the construction procurement approach is established. Future project costs may also be affected by construction escalation, permitting requirements, site conditions and the final scope and timing of the project. Advancing Option B through design does not authorize issuance of debt or construction of the permanent facility. Those decisions would occur through subsequent budget, financing and Council approval processes. ENGAGEMENT AND PARTNER INPUT Concept development has been informed by coordination with the City of Cornelius, Metro operations staff, technical consultants and the Regional Waste Advisory Committee. City of Cornelius and Technical Coordination Staff has coordinated with City of Cornelius staff, including the Development Director and City Engineer, to better understand land-use, transportation, infrastructure and development considerations associated with the property. This coordination has helped inform site layout, traffic circulation and other elements of the conceptual designs. The consultant team was led by Scott Edwards Architecture, with JRMA providing solid waste architecture and engineering expertise, and Harper Houf Peterson Righellis Inc. providing land-use and civil engineering expertise. Operational Input Metro operations staff also participated in concept development to help evaluate facility programming, customer and vehicle circulation, material handling and other operational considerations. This input was incorporated into the conceptual plans presented for further review and engagement. 5 Regional Waste Advisory Committee The Regional Waste Advisory Committee reviewed the Cornelius project in February and July 2026. In February, the committee reviewed the proposed phased development approach, including the interim depot and early concepts for two differently sized permanent facilities. Committee members expressed support for the interim depot and the phased approach as a way to begin addressing the service gap in western Washington County while the permanent facility is developed. In July, the committee evaluated the Compact and Optimized depot concepts against the values and outcomes of the Regional System Facilities Plan. Members were asked to identify the most important considerations in selecting a preferred concept, indicate which concept best supports the plan's values and outcomes, and provide feedback on what worked well and what could be improved. When asked which concept best supports the Regional System Facilities Plan values and outcomes, seven committee members selected the Optimized Depot and three selected the Compact Depot. Members favoring the Optimized Depot most frequently emphasized its flexibility to respond to future needs, additional opportunities for reuse and repair, potential for community and educational uses, partnerships and long-term community benefit. Members favoring the Compact Depot emphasized its smaller footprint and lower construction cost, efficient use of the property and preservation of industrial land for other economic development opportunities. Committee feedback reinforced the central tradeoff between minimizing near-term funding and land requirements and providing greater flexibility and community benefit over the long-term life of the facility. See Attachment D for the committee advisory report. NEXT STEPS AND PROJECT DELIVERY If Council endorses Option B as the preferred permanent depot concept, staff will proceed with the next phase of project development. This phase will include refining the preferred concept through design and engineering, conducting design and constructability review, and continuing coordination with the City of Cornelius and the Oregon Department of Environmental Quality on applicable land-use, building and environmental permitting requirements. Staff will also continue engagement with community members, operational staff and project partners as the design advances. In parallel, staff will develop and implement the appropriate procurement strategy, refine capital and operating cost estimates and the project financing approach, and further develop the project schedule. Staff will return to Council at key decision points as the project advances toward final design and construction readiness. Project timing will depend on design and constructability findings, permitting pathways and approvals, procurement, continued engagement and other project development requirements. Council endorsement of the preferred concept is an important project milestone, but additional decisions regarding final project scope, financing and construction will occur as the project advances.