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Home My WebLink AboutVII (B) Discussion re Solid Waste Rate Agenda 5-06-2003 Center of Good Item VII B Mayor .(be �1'Llo> Commissioners ti Scott Vandcrgri It 0011i w tm _ Daunt Howell, District 1 �_J }� Scott Anderson Dist]District 2 CityManager H" . Rust, Johnson, District Jim Gleason r./411121; Nanc, 7 Parker. Dist net 4 MEMORANDUM TO: The Honorable Mayor and Board of City Commissioners FROM: David A. Wheeler, P.C., Director of Public Works DATE: April 29, 2003 RE: Discussion on Household Solid Waste Rates ISSUE: The City of Ocoee is currently charging $16.00 per month per household for the collection and disposal of residential household waste. It is currently costing the City $18.38 per month per household for the collection and disposal of residential household waste. DISCUSSION: Should the City consider the issue of continuing to provide it current level of service to its residential customers now and as the City expands or should the City consider privatizing the entire operation. The attached presentation will discuss both options and provide costs for review and discussion. RECOMMENDATION: It is staffs recommendation to continue the present level of service to Ocoee now and as it expands and that the City Commission approve the increase in monthly costs to $21.00 per month per residential customer. If this recommendation is approved the Public Works Department with Foley and Lardner's assistance will proceed with the formal documentation and hearing required to put these rates in effect on October 1, 2003. Cilv of Ocoee • 150 S. I.akcshure Drive • ()cocc. Florida 34761 phone:(407)905-3100 • fas: (407)656-8504 • ivww.ci.ocoee.fl.us SOLID WASTE WORKSHOP May 6, 2003 Solid Waste Issues • Ocoee Continues to Expand with Same Level of Service Throughout City • Ocoee Maintains Current Service Area and Privatizes Expanding Service Area • Ocoee Privatizes All Solid Waste Collection LEVEL OF SERVICE • Ocoee Continues to Expand with Same Level of Service Throughout the City — Ocoee handles Residential/Recycle and Privatizer handles Yard and all Commercial — As Ocoee grows the Solid Waste area of operation grows with it and additional routes/trucks/people are needed accordingly — As equipment depreciates it is replaced LEVEL OF SERVICE • Ocoee Maintains Current Service Area and Privatizes Expanding Service Area — As Ocoee grows the new areas are Privatized — As equipment depreciates it is replaced — Ocoee still handles the service area established "today" for residential and recycle — Potential different levels of service — there are two different companies — This option is not in the best interests of the City LEVEL OF SERVICE • Ocoee Privatizes All Solid Waste Collection — Ocoee gets out of the solid waste business — Most employees are absorbed into the other departments — Still need some staff to administer to program and handle telephone calls — What level of service do we require the privatizer to provide Current Level of Service Per Week for Residential • Two Residential Household by Ocoee • One Recycle by Ocoee • One Yard Waste by Contract Collector • Billed to Customer Monthly by Ocoee Current Level of Service Per Week for Commercial and Other • Commercial Waste based on Volume • Commercial C&D by the Roll-off • Residential C&D by the Roll-off (working towards implementation) • No Commercial Yard Waste • Billed Directly to the Customer by Contract Collector Monthly Residential Solid Waste Actual Costs Monthly Collection Disposal Recycle Total Charge 1991 11 .60 4. 10 15.70 16.00 1992 11 .35 3.21 0.45 15.01 16.00 1993 11 .26 3.03 0.50 14.79 16.00 1994 11 .00 3.59 0.90 15.49 16.00 1995 11 .34 4.09 1 .02 16.45 16.00 1996 11 .32 3.86 0.70 15.88 16.00 1997 11 .33 4.27 0.77 16.37 16.00 1998 10.92 3.34 4.45 18.71 16.00 1999 9.71 2.88 4.88 17.47 16.00 2000 9.79 2.71 5.04 17.54 16.00 2001 10. 19 3.06 5.41 18.67 16.00 2002 10.07 3.08 5.23 18.38 16.00 Other City Plans & Costs (They Collect to Others Landfill) • Once Weekly Garbage, Recycle & Yard — Clermont $21 .50 — Leesburg (1 cart) $ 18.50 — Leesburg (2 carts) $28.50 • Twice Weekly Garbage & Once Recycle & Yard — Altamonte Springs $ 14.00 — Apopka $ 14.00 — Orlando $ 13 .00 — Winter Garden $ 16.00 — Ocoee $ 16.00 Other City Plans & Costs (Total Privatize) • Once Weekly Garbage, Recycle & Yard — Casselberry ( 1 - 1 - 1 ) $ 12.00 — Casselberry (2- 1 - 1 ) $ 19.00 — Groveland $20.60 — Lake Mary (2- 1 - 1) $ 13 . 10 — Maitland $ 13 .20 PROPOSED NEW RATES • Current charges are $ 16.00 per household • In FY 01 -02 Ocoee' s costs were $ 18 .38 per household • For FY 03-04 Ocoee ' s estimated cost is $ 19.00 per household • This is not expanding for growth - only maintaining current area of service (however we need one new route in the current service area now) • PLUS PROPOSED NEW RATES • To add a new route with driver costs approximately $205,000 ( 1 /4 truck, driver, carts, tipping fee, other operating costs) • At the end of the second year an additional 800 customers will have been added and an additional route/truck/driver/etc. will be needed and so on as we expand • This equals an additional $2.00 per household per month PROPOSED NEW RATE • Therefore propose a monthly fee of $21 . 00 — $ 19.00 per household per month based upon projected costs plus — $2.00 per household per month for expansion of one route • Also a set yearly percentage or CPI Index increase should be included in the rates Ocoee Rolling Stock • 7 Garbage Trucks (2 are backups) — Age: 2- 1992, 1993, 1996, 1997, 1998, 1999 • 2 Recycle Trucks ( 1 on order) — Age: 1989/99, 1992 • 1 One Ton — Cart Deliveries — Special Pickups • 2 Pickup Trucks Level of Service • On Household Should be Averaging 750 Households per Route based upon an industry standard of 40 seconds per household • Actual: 857, 912, 904, 933, 696, 928, 820, 1014, 681 , 824 which averages 857 • On Recycle Should be Averaging 950 Households per Route • Actual: 1057, 1345, 1185 , 1116, 845, 727, 1059, 1228 which averages 1070