The URL can be used to link to this page

Home My WebLink AboutItem 11 Selection of Residential Solid Waste Service Level for Fiscal Year 2019/2020 ocoee florida AGENDA ITEM COVER SHEET Meeting Date: August 20, 2019 Item # II Reviewed By: Contact Name: Stephen C. Krug Department Director: / Contact Number: 6002 City Manager: /1/1 Subject: Selection of Residential Solid Waste Service Level for Fiscal year 2019/2020 Background Summary: The City commission approved Resolution No. 2006-003 to provide for collection of Solid Waste fees through the annual Orange County tax roll. The agreement between City of Ocoee and Orange County Tax Collector requires the City to annually certify the non-ad valorem assessment roll by September 15th. City Staff identified funding issues with the current level of service standard at the City Commission's Budget Workshop held on August 8, 2019. City Staff is requesting Commission approval of service levels for the residential solid waste program to be incorporated in the 2019/2020 budget. If the City Commission wishes any resulting changes to impact the tax roll this year instead of one year from now, direction is needed in advance of the pending Budget Hearing scheduled for September 11 and the deadline for certification of changes to the tax roll of September 15. Staff will present options and the associated budget impacts. Issue: Requesting Commission direction on the service levels for the residential solid waste program. Recommendations Recommend City Commission approve a service option for the residential solid waste program to determine the Non—Ad Valorem Assessment Roll for Solid Waste. Attachments: None Financial Impact: The current Non-Ad Valorem fees generate revenues of$3,299,184.00 for the Solid Waste fund. Type of Item: (please mark with an `k') Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda Commission Approval Discussion&Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Reviewed by () N/A M 2 8/15/2019 , 1111 Residential Solid Waste Program ProgUpdate 2019 ._ _. .. 64, , ,,, . ...' .,_‘-f_.4. ocoee Public Works Team His • y & Goal • r • . vIdg _. 0 Fee Structure: • $16/Month ($192/Yr) 1997 - 2005. • $1g/Month ($228/Yr) 2005 - 2008. • $21/Month ($252/Yr) 2008 - Current. • Investigate 1 garbage pick-up per week. • Same 1 recycle pick-up every other week. Same weekly yard & bulk waste pick-up.II JL 4\�/� Public Works Team Residential Solid Waste Progr. •. UcOe.e ' 2016 Goals ) Market Changes Current Issues Options Recommendations z 1 8/15/2019 t Changes in the market: County stops taking yard waste at transfer station: .,, Orange says landfill improving, but neighbors still raise stink Orange County Solid Waste division believes it has a solution to the smelly problem at the landfill on Young Pine Road. nudakcoractseyarerarr,eos. u 14 dr'4 Public Works Team Residential Solid Waste Program Update 2018 ocdee 2016 Goals ' Market Changes [ i ii.iiiigg=._ 3 anges in e mar • Recycling no longer zero dump f -. n. - 0 ,40 200 R C• • : Some Bay area residents may end up paying gi Plu CI on more to recycle NiN TAMPA BAY P Santa Rosa County recycling will head to landfill as costs triple P Largo pays more as recycling pays less B,c City of ri-- -- t....•-- ..----1-1.1..,. ��.......,L. A1G t�'hatIc the. V arth ♦vnrth9 Picina re.rvrlina Recycling's new reality: 'When in doubt, throw it out' South Florida Sun Sentinel,Jun 2S,201S donmradee 2016 Goals Market Changes , ( Recommendations 4 2 8/15/2019 Service Related Cost Issues: • Yard waste fees increased from $33.60/ton to $45.45/ton ($96,100). (Hauling to County landfill would cost $46.48/ton) • Redirected contaminated recyclables did not '! reduce materials to landfill. • Recycle fee went from zero to $49.26 per ton ($118,300 cost) in June, 2017. I* County garbage tipping fee increased 3.5% 7 ' ($16,000) in October, 2017... ... .. atiti 41,1, Public Works Team Residential Solid Waste Program Update Ocoee 2016 Goals Market Changes Current Issues Options Recouu xe. 5 MF 4111111 ervice Relate Cost slues: • Truck replacement budgeted on 5 year cycle, running 5 days per week is wearing trucks out in 4 years. • Adds $96,250 to capital costs annually... • Plus $35,000 in repair costs. • Labor cost increase $141,000 (17%) since 2008. • Over $500,000 cost increase for disposal & operating costs since 2008! /0" 4041. Public Works Team Residential Solid Waste Program U. OCOee >oi6Gt4OMarket C l Current Issues Options Recommendations 6 3 8/15/2019 The current collection program needs Imoto be updated! ,. Public Works Team Residential Solid Waste Program Update Current Issues OQtlons Recommendations 11111111111111.W. , � ...., Vir What needs to be addresses . : • Recycling. • Service frequency. • Rate adjustment. The program has been fairly stable for years until recent external increases beyond the control of the City. Ai ��,, Public Works Team Residential Solid Waste Program Update OCO?E' ( ,( options J econnnendations 8 4 8/15/2019 I Recyc e Op ions: 1. Maintain current system of taking contaminated loads to the landfill. 2. Return to bin system. 3. Set up central manned drop off location. 4. Suspend program until market returns. 41/4.S. Public Works Team Residential Solid Waste Program Update oc eo e 34-T . �. a. ,oi t !visa-ail Options ,dations 9 Recycle Op' ion 1: Maintain current service: .- • Current program and cost structure is not working and will require a minimu $3.12 per month increase per household to cover existing inefficiencies. ($37.50 per year) e . 40 4.4/ Public Works Team Residential Solid Waste Progra .... ocoee X0166051 iNlaiijejGt � CurrentI s"ues'`=e Options Rec'onvnendations 110000 , 105 8/15/2019 Recycle Option 2: 0 Return to Bin System: - - , �� • 2 new rear load trucks ($480,06gw ta t s) 10 • New bins ($166,500/6 yrs). • Added personnel ($300,000). • Other cost increases ($287,840). • Increase required of $4.64 per month per household. ($55.68 per year). .4g, Public Works Team Residential Solid Waste Program Update 1411°I OCOPP 2oi6 Goals Market Changes Current Issues Options Rec 'NW-1W Recycle Option 3:. P _Drop ; 8/15/2019 Recycle Option q.: Suspend recycling program until viable market returns: • Reduces equipment costs and repairs by 1L$131,250 only operating 4 days per week. • Need to increase for labor and landfill costs Increase required of $1.69 per month per household. ($20.28 per year). 9 r Public Works Team Residential Solid Waste Progra •... Ocoee =I Market Changes Current Issues Options , Recommendations 3 1 ralliir ' .'' w III low 11111 Recycle Option Summary: 1. Maintain current service: $289.50 per year, $24.13 monthly, 15% increase. 2. Return to bin system: $307.68 per year, $25.64 monthly, 22% increase. 3. Central drop location: $284.64 per year, $23.72 monthly, 13% increase. 4. Suspend program: $272.28 per year, loi $22.69 monthly, 8% increase. �J•e %. Public Works Team Residential Solid Waste Program Update OCOee 20r6 Goals Market Changes Current Issues Options 14 7 8/15/2019 Garbage Collection Option Go to 1 pick up per week servi • No increase for equipment cos s. • Does not eliminate Increase to yard waste dump fees. • Does not eliminate Increase to garbage dump fees. • Does not eliminate increase in labor. ri No large benefit. 4`Vir Public Works Team Residential Solid Waste Program Update l 1 l Options i t i y IRRIn Mil,'" ay. Fund Contributes to Solid Waste: IGeneral • Select service levels to fund. • Moderate increase (i.e. $275) and subsidize remainder from General Fund. • Contracted Service. • Maintain existing service with minimal increase. IPublic Works Team Residential Solid WasteProgramUpdate ()wee3 ,! J` Options l f ) une .e ffi 8 8/15/2019 W Recommended ervice ption • 2 garbage pick-up days per week. • Central drop off for recycle. • Return to 4 day weekly yard & bulk waste pick-up. • 2020 annual rate would be $284.64 or $23.72 monthly (13% increase after ii yrs) • Provides a truck maintenance day. Extends service life of equipment. .104 ==- r t I Public Works Team Residential Solid Waste Program Update 0(,,,(,),r-' =Mid I Recommendations Residential Solid Waste Program Update / Questions? - fll — — • \\_ ef- :.11 _ � Ocoee Public Works Team Residential Solid Waste Program Update uoitae ,8 9