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VII(A) Approval and Authorization of Replacement of Two Garbage Trucks and Authorization and Approval to Complete Purchase of Recycling Truck (currently on hold) from the Replacement and Repair Funds Agenda 04-06-2004 Item VII A Mayor ,Sbe Center of Good Liv Commissioners S. Scott Vandergrift Danny Howell,District 1 zYgrikj Scott Anderson, District 2 City Manager —MIP Rusty Johnson, District 3 Jim Gleason _ _ Nancy J. Parker, District 4 STAFF REPORT TO: The Honorable Mayor and City Commissioners FROM: Robert B. Zaitooni, P.E., Deputy Public Works Director/City Engineer DATE: March 16, 2004 RE: Capital Expenditure for In-House Residential Garbage & Recycling Collection & Disposal (Option C) ISSUE: Should the Honorable Mayor and City Commissioners approve the capital expenditure for the purchase of two(2) replacement garbage trucks and one (1) recycling truck currently on order for Option C (continued in-house service); and approve the funding sources identified? BACKGROUND AND DISCUSSION: On February 17, 2004, the City Commission approved Option C, continuance of the in-house services for the collection and disposal of residential garbage and recycling within the City limits. In order to implement Option C, contingent upon approval of Resolution Number 2004-05 to increase the residential solid waste rate from $16.00 to$18.25, the following actions and expenditure are necessary: • Complete purchase of the recycling truck currently on hold from the Container Systems & Equipment Company, Inc. at$147,754.00 • Replace two (2) garbage trucks in the current fiscal year from Container Systems& Equipment Company, Inc. at$143,631.00 each, a total of$287,262.00 • Accept$3,000.00 in trade-in for garbage truck#720 (1992 EVO Mag 20). The total net capital expenditure is$432,016.00. Staff also requested a price quote for the fully automated collection truck, which does not require the driver to exit the truck. The price per unit is $22,243.00 higher than the standard side load truck ($143,631 vs. $165,874). A cursory review of the operational issues indicates that the efficiency gains in collection time are offset by the initial capital costs, costs of repairs of automated parts, etc. Furthermore, with the automated operations, the on-street parking must be prohibited on the designated collection day, which can become a significant issue for the residents and the collection operation. City of Ocoee Public Works•301 Maguire Road•Ocoee,Florida 34761 phone: (407)905-3170-fax:(407)905-3176-www.ci.ocoee.fl.us The$432,016.00 needed to fund the purchase of the trucks is proposed to come from the following sources: • $379,105.00 from the cash balance from the R & R funds • $11,500.00 from the insurance proceeds for the totaled garbage truck • $38,732.00 from the lease payments to be paid back to Solid Waste funds for the use of funds allocated for the purchase of the recycling truck currently on hold • $2,679.00 from Solid Waste Operating Contingency RECOMMENDATION: Staff respectfully recommends the Honorable Mayor and City Commissioners to: 1. Approve purchase of two (2) replacement garbage trucks and complete the purchase of one (1) recycling truck currently on order from the Container Systems& Equipment Company, Inc. at a net cost of$432,016.00 (including $3,000 trade-in for garbage truck number#720). 2. Approve the funding sources for the expenditure from the R & R funds ($379,105.00), insurance proceeds ($11,500.00), lease payments ($38,732.00), and from the Solid Waste Operating Contingency ($2,679.00). Attachments: February 17, 2004 Staff Report Quotes from Container Systems& Equipment Company, Inc. 2 - PRICE QUOTATION - DATE: March 7,2004 TO: City of Ocoee Mr. Darrel Dees,Supt. Public Works, Solid Waste Div. OTY. DESCRIPTION PRICE EA. one(1) 2004 Lodal EVO-MAG-20 side loader, $ 140,931.00 (more or less) 40,000 lbs. GVWR, 20 cu.yd.hi-compaction body, including the following: Standard Equip. Cab: low-entry(18")both sides,standup/sit-down drive on left side, standup drive on right side,galvannealed steel construction,sliding doors (inside cab)on both sides,hand applied route brake(work brake) Cat 3126B(electronic) engine-230 h.p. @ 2,400 rpm 660 lb-ft torque @ 1,440 rpm Cat engine monitoring/protection system Allison MD-3060 5 speed transmission Dana/GKN SD66-1S front drive/steer axle w/integral transfer case(20,000 lbs.rated,5.357 ratio,approx. 55 mph top road speed) extra heavy duty non-driving single rear axle-22,000 lbs.cap. Spicer 1710 series drive line air brakes: front- 15.5"x 8" S-cam(cast shoes w/outboard drums) rear- 15.5"x 8" S-cam(cast shoes w/outboard drums) front axle mounted park&emergency type 30 spring brakes Tires: 425/65R x 22.5 Goodyear G286 radial,all positions Wheels:hub-piloted steel disc Haldex auto. slack adjusters WABCO 4 channel anti-lock brakes(ABS) crankshaft driven hydraulic pump dual cab fans AM/FM/Cassette radio dual-3 position roof vents(18@ x 24 @ ea.) air horn,roof mounted battery disconnect switch hopper light 7 ga.tailgate(ILO 10 ga.) .25"sidewalls(ILO 3/16") (continued) EVO Mag 20 quote March 7,2004 page 2 High pressure in-line hydraulic filter(10 micron) Dual spin-on hydraulic return filters(10 micron) Optional Equipment Paint: Omaha Orange(single color acrylic urethane applied over epoxy primer) Padded,insulated,grey vinyl interior Bendix AD-9 air dryer 50 gal. fuel tank toe steps(2 ea.) dual cart tippers Timbren rubber overload springs(front suspension) hopper enclosure w/streetside door air filter restriction indicator amber strobe on tailgate axle differential lock 2 extra cab fans Sub-total: $ 140,931.00 Federal Excise Tax(12%) n/a FL. State Sales Tax(6%) n/a TOTAL: $ 140,931.00 F.O.B.: Ocoee(via driving) DELIV.: approx. 180—210 days ARO TERMS: net 10 days TAXES: Any state or local taxes,title,tag,or registration fees that may apply; are not included. WARRANTY: Basic vehicle- 1 year; engine-3 years; transmission-2 years OPTIONS: Intec rear vision camera system(CVM700LPP 7"monitor, CVXLP2OM polyurethane cable,CVC210XL waterproof camera) $ 1,600.00 5 yr.,unlimited miles,extended trans.warranty(Allison MD-3560) $ 1,650.00 7 yr., 150,000 miles,extended engine warranty(Cat) $ 1,050.00 NOTE: Prices subject to review after 14 days from date. Respectfully, Bill Young, Pres. ')'12/. UJJ 1(4..44' ,4tJrbjh 1_j/J1 ul_.Lit.t_ t lierir I I r1UL City of Ocoee Nov. 7,2003 Page 2 This offer assumes the vehicle(s)would be available within 90 days of the date of this offer,and that the units would be in essentially the same condition as when inspected on Nov..5,2003,normal wear aad tear allowed We reserve the right to review this offer after 30 days from the:date of this letter. Thank you for your consideration, if you have questions or need more information,please don't hesitate to call Bill Young,at 800-758-1745. Sincerely 41, Bill Younl, Pres. Tuesday,March 09,2004 Mr.Darrel Dees, Solid Waste Supt. City of Ocoee Dear Mr.Dees: In reference to your inquiry regarding changing the specifications on the Lodal trucks include the fully automated FT-90 autoloader,this letter is to confirm the price for that modification. The net cost to change the units from semi-automated style to automated style,is$22,243.00 each. This includes the following: FT-90 Autoloader option—operate in gear at idle Joystick controls w/adjust.armrest 45,000 btu Air Conditioning curbside air-ride seat streetside Bostrum 700 series mechanical suspension seat .25"hopper floor liner 7 ga.lower tailgate liner hopper enclosure w/curbside access door overspeed cut-out on autoloader arm air to oil aux.trans.cooler w/fan Dual Intec camera system(includes hopper and back-up(reverse)cameras) Note that when air conditioning is provided,the dual roof vents are deleted. This price is net of credits for deleting the dual cart tippers and deleting the dual roof vents. Thank you for this opportunity,if you have any questions or need more information,please don't hesitate to contact me. Sincerely, Bill Young Pres. Container Systems&Equip.Co.,Inc. ���tNa t °t Gond Gp, CITY OF OCOEE I:='Q � 150 N LAKESHORE DR OCOEE FL 34761-2258 407/905-3100 x1516 Fax 407/656-3501 PURCHASE ORDER: 1413845 Page: 1 of 1 ***** VENDOR ***** ***** DELIVER TO ***** CONTAINER SYSTEMS PUBLIC WORKS FACILITY 506 BELLEVUE AVENUE 301 MAGUIRE RD DAYTONA FL 32114 OCOEE, FL 34761 SANITATION DIVISION Ordered Due Ship Via FOB Terms Customer# 03/27/03 09/30/03 DEST NET C07 Requisition No. Vendor No. 3$(p Vendor Phone 3810 Vendor Fax 3660-1 !94/253-5555 $@4/253-8537 No Quantity U/M Description Unit Price Extended G/L Account 1.00 EA 2002 LODAL "ECO" CAB & CHASSIS 147,754.0000 147,754.00 402-239000 W/G-S PRODUCTS RECYCLING BODY, PER THE ATTACHED SPECS. ** TOTAL ** 147,754.00 Received by A•tl1lr')VC2(1 for r)T"nic'tit )eilri .- 1)-Iar1-11Cut--- - - -- - - I?ate Received __ ._ • rt..� VENDOR INSTRUCTIONS: SPECIAL INSTRUCf1'.:N� 1. Mail Invoices to: CITY OF OCOEE APPROVED CITY OMMISSION AGENDA 2/18/03 ITEM IIIC ATTN: ACCOUNTS PAYABLE LEASE APPROVE[` 'IPY COMMISSION 3/18/03 ITEM IIID 150 N. LAKESHORE DRIVE OCOEE, FL 34761-2258 2. Invoices and Packages must bear the P.O. No. Above. 3. Purchases may not exceed the total amount of this V J order without prior approval by the Purchasing Dept. 4. Acceptance of this order includes acceptance of all terms, prices, delivery instructions, specifications and conditions. 5. State Tax Exempts 58-00-094593-54C EIN: 59 5019764 Purchasing Agent 6. If you have questions, please call 407/905-3100 x1516 Department 1L_�11/1UU3 14:4L 411/bib j i & LQUIpME NT CO., INC. dU5 �" r" Nov. 7,2003 e. J' j Ms. Joyce Tolbert Finance D epL,City of()wee 150 N. Lakeshore Dr. Ocoee, FL 34761 • RE: Solid Waste Truck Fleet Dear Ms.Tolbert: We areaware that the City is strongly considering privatizing its' Solid Waste. Dept. We are sorry to know that,since the City has been a valued customer for many years,and we always regret losing a good customer. Having said that,we would like to submit an offer to purchase the City's used equipment,if indeed the City gets out of the collection business and wishes to liquidate the fleet. Below is a schedule of the City's equipment and the prices we are offering. • Group 1 #716 EVO Mag 20 $ 25,000 #708 EVO Mag 20 $ 14,000 # 706 EVO T25 $ 12,000 # 714 EVO Mag 20 $ 11,000 '? S 0 6 aau_z. # 713 EVO w/G-S Recycle body $ 3,500 #723 EVO"Mag 20 $ 4,000 #720 EVO Mag 20 $ 3,000 # 722 MC w/Dempster body $ 1,500 # 707 EVO Mag 20 $ 3,800 Note that we are willing to purchase any single unit,or all four,of the units in group 1. However,we would only be willing to purchase the units in group 2,any single unit,or all five,if we could also purchase at least 3 (any 3)of the units in group 1. • 506 Bellevue Avenue • Daytona Beach, Florida 32114-5279 • (386) 253-5555 • FAX (386) 253-8537 Website:www.containersys.Com•Email:info®containersy5.Com 04/ 9/2002 11:13 904-253-8537 CONTAINER SYSTEMS PAGE 02 r ♦ Container Systems ,/ & Equipment Co., Inc. - PRICE QUOTATION DATE: • April 28,2002 • TO: Mr. Darrel Debs City of Ocoee QTY. DESCRIPTION PRICE EA. one(1) 2002 Lodal"ECO"cab&chassis, $ 147,754.00 or more with G-S Products recycling body, including the following: Chassis Equipment Standard Equip. , Cab:low-entry(18")both sides,standup/sit-down drive on left side, standup drive on right side,galvannealed steel construction,sliding doors . (inside cab)on both sides,hand applied route brake(work brake) Cat 312613(electronic) engine-230 h,p, @ 2,400 rpm,660 lb-11.torque @ 1,440 rpm .Cat engine monitoring/protection system Allison MD-3060 5 speed transmission Dana/GKN SD66-1S front drive/steer axle w/integral transfer case(20,000 lbs. rated, 5.357 ratio,approx. 55 mph top road speed) extra heavy duty non-driving single rear axle -22,000 lbs. cap. Spicer 1710 series drive line air brakes: • front- 15.5"x 8"S-cam(cast shoes w/outboard drums) rear- 15.5"x 8" S-cam(cast shoes w/outboard drums) • front axle mounted park&emergency type 30 spring brakes Tires:425/65R x 22.5 Goodyear 0286 radial,all positions Wheels:hub-piloted steel disc Haldex auto, slack adjusters WABCO 4 channel anti-lock brakes(ABS) crankshaft driven hydraulic pump dual cab fans AM/FM/Cassette radio dual-3 position roof vents(18"x 24"ea.) air horn,roof mounted battery, disconnect switch Paint: acrylic urethane applied over epoxy primer (continued) • 506 Bellevue Avenue • Daytona Beach, Florida 32114-5279 • (904) 253-5555 • FAX (904) X53-8537 0 04/.29/2002 11:13 904-253-8537 CONTAINER SYSTEMS PAGE 03 City of Ocoee quote April 28,2002 . page 2 • Optional Equipment • Sp. Paint color:Omaha Orange Bendix AD-9 air dryer air filter restriction indicator Body Equipment G-S Products Model 5738D Load Enhancer recycling body 38 cu.yd.w/2 compaction compartments dual side."over-top"loading troughs engine driven"front mount"pump w/overspeed protection amber strobe light on tailgate rear vision video system all other std equip. -see attached body specs. Paint:high quality primer coating and Omaha Orange urethane enamel finish • Sub-total: , S 147,754.00 Federal Excise Tax(12%) n/a • FL. State Sales Tax(6%) n/a . TOTAL: • • S 147,754,00 F.O.B.: Ocoee,FL.(via driving) DEI.,JV.: approx. 210 days ARO TERMS: net 10 days NOTE: Prices subject to review after 60 days from date WARRANTY: Includes the following warranties: cab and chassis: Lodal • 1 year • Engine: t~AT-3 years Transmission:Allison-2 years Body: G-S Products- 1 year,Cylinders:2 years Res fully, 4:507 Bill Young, Pres. • e Center of Good Lxt Mayor (Sb u/2 e c..onwo.,ssi.Qiwrs S. Scott Vande.rgrift „�� .,,r Danny }towel], District 1 Scott Anderson, llistrict 2 CityManager t© __—� COE }lusty Johnson. District 3 Jim. Gleason Nancy J. Parker,ker, I_)istrict I STAFF REPORT TO: The Honorable Mayor and Board of City Commissioners FROM: David Wheeler, Public Works Director DATE: January 22, 2003 RE: Sole Source Procurement of a Lodal Recycling Collection Truck ISSUE; Should the Honorable Mayor and Board of City Commissioners approve the purchase of a 2002 Lodal "E VO"cab and chassis recycling collection truck, waiving the bid process? BACKGROUND AND DISCUSSION; Container Systems Bt Equipment Co., Inc. is the only authorized dealer in the State of Florida for Lodal recycling/refuse collection trucks. Our entire sanitation fleet is made up of Lodal trucks and they have been determined to be the truck that best meets the needs of the department. Any change of vehicle type would require additional cross training of crews, parts inventory, P. M. requirements, additional supply vendors, and our fleet would not be uniform. Keeping the fleet uniform enables the department to continue a high level of service to the community. A new recycling truck is budgeted in this year's CIP. We have a bid from Container Systems, Inc. for $147,754.00, which meets the amount budgeted. The only other price we were able to obtain for a Lodal truck was from Waste Management. Their last bid was for 100 +vehicles and was in the $132,000 price range. • RECOMMENDATION; Staff respectfully recommends the sole source procurement of the 2002 Lodal "E VO" cab and chassis recycling collection truck from Container Systems and Equipment, Inc., in the amount of $147,754.00, and the bid process be waived. DW:jh City of'Ocoee • 150 N Lakeshore I)rive • Ocoee. Florida 34'761 CITY OF OCOEE REQUISITION TO THE PURCHASING DEPART. No. / CHARGE ACCOUNT NUMBER PLEASE ORDER FOR DEPT /. ' SUGGESTED SUPPLIER 0.� /_/!A VA' FINANCE SIGN OFF: TO BE USED AT LOCATION 04 w,t-dp TO BE USED FOR PURPOSE DATE NEEDED: JUSTIFICATION(MUST BE COMPLETED) (iiipitatied 49,1/43 LIP fippue-eP--840 -2/(1/O3 COMMENTS: 1 • ‘..1 .A _ 1/1 i A 6 if 1 , OriZ dpa c yr UJGG I ues it r.cess be 1a I ue/ �iI order- -tv keep -Q(ef4 cods i51 nf_ i I ��N. �I AJh ; ` z ii t iw 6tt 010077 Shl C 0 S Pgoki 1r 147 75-4. AfLad,C hocif p_n_atathAf,o_f_p_c_Li • , Q . I'kr3 GRAND TOTAL '[�i� q5f. PLEASE CHECK ONE DATE /0?'-j46_ & SHIP TO X301 tY wi,,. �,(� ' SIGNED WILL PICK UP e Center of Good Llv. Mayor •Sb Commissioners S. Scott Vandergrift '""r Danny Howell, District 1 Scott Anderson, District 2 City Manager Rusty Johnson, District 3 Jim Gleason — f Nancy J. Parker, District 4 STAFF REPORT TO: The Honorable Mayor and Board of City Commissioners FROM: Bob Zaitooni, Deputy Public Works Director DATE: February 17, 2004 RE: Residential Solid Waste Collection & Disposal Options ISSUE: Should the Honorable Mayor and Board of City Commissioners consider the available options for the collection and disposal of residential garbage and recycling in the City of Ocoee; and select and approve one of the available options? BACKGROUND AND DISCUSSION: The current rate charged for the residential solid waste (garbage and recycling) collection and disposal is$16.00 per customer per month. Staff previously requested the City Commission to increase the current rate to sustain the in-house residential garbage and recycling operation, and plan for the future growth and replacement of the rolling stock. The City Commission, on June 17, 2003, instructed staff to evaluate privatization of the residential waste collection and disposal within the City limits while ensuring relocation of the current City sanitation employees without loss of jobs. Staff conducted a comprehensive evaluation of the available options and has narrowed the choices to the options listed below for consideration by the City Commission. Option A. Privatization of residential garbage and recycling through a City RFP process. An RFP was advertised in August 2003 and six (6) formal proposals were received on October 14, 2003. In summary, the RFP contained the following: • A seamless transition from the current in-house to private hauler will take place with minimum impact to customer. • A weekly service consisting of two (2) Garbage and one (1) Recycling collection and disposal, to be phased in over a 3-year period. • The phase-in period would enable the City to relocate the staff within other Departments without displacement. • The current City 96-Gallon garbage carts are used. City of Ocoee Public Works•301 Maguire Road•Ocoee,Florida 34761 phone: (407)905-3170•fax:(407)905-3176■www.ci.ocoee.fl.us • The City retained the option of shortening the phase-in period depending on speed of the employee relocation process. • Yard waste and bulky waste collection and disposal are not included in the RFP since a separate contract currently exists for this service. • Container management as well as contract administration, complaint resolution and inspection service will remain with City staff. • Substantial penalties are incorporated for missed service and unresolved customer issues. • Residential solid waste rates will not be increased Two (2) of the six (6) haulers have proposed a graduated rate, increasing every year through the life of the contract. The remaining haulers proposed a constant rate for the five (5) year contract. It should be noted that the rates shown in Table 1 are not adjusted to cover the in- house (City) administrative costs. The rates as proposed by the private haulers are summarized in the table below. Table 1. Proposed Rates by RFP Haulers Advance Republic *Waste Onyx Florida *Waste Disposal Services Pro Base&Alt. 1 Recycling Management 13.99 12.35 14.23 13.78 11.63 10.98 13.60 *Proposed graduated rate. Year 4 rates are shown. The City's selection committee met on January 20, 2004 and ranked the submitted RFP's based on the lowest responsive bid. The lowest responsive bid is defined as the lowest cost hauler with demonstrated capability, experience, and financial means to execute the requirements of the RFP as determined by the Selection Committee and approved by the City Commission. The Ranking by the selection committee were as follows: Rank 1. Onyx Waste Services, Alternate# 1 Rank 2. Florida Recycling Rank 3. Republic Services Rank 4. Waste Management Rank 5. Advanced Disposal Rank 6. Waste Pro In summary, Option A allows the City to hire a private hauler to perform the services using the 96-gallon carts without loss of employment for current City employees. This option will also guarantee the Residential Garbage and Recycling Rates will not increase beyond the current $16.00 for the next 5 years. The container management and contract administration will remain with City staff with the goal of minimum customer dissatisfaction. Option B. Orange County to provide the services through an Interlocal Agreement. Orange County Utilities, through use of their franchise agreement with various haulers, has submitted an Interlocal Agreement for the collection and disposal of residential solid waste within the City limits. Orange County has proposed 2 methods of collection, one that includes the use of the City's 96-gallon carts and a second that requires no carts. A summary of the highlights include the following: 2 • Services will include 2 Garbage, 1 Recycling, and 1 Yard Waste per week. • Curbside garbage service will include an unlimited number of containers and 2 containers of material from repairs and remodeling, at no additional charge. • Weekly curbside yard waste service of 3 cubic yards versus City's limit of 2 cubic yards. • Orange County will assign a hauler for services within the City of Ocoee. • City will maintain customer service for responding to Ocoee citizens. • Orange County will administer the contract with the hauler and will be responsible for enforcing the terms of the contract. • Orange County will be billing the City on a monthly basis with the option of annual assessments on the tax roll. • City of Ocoee will continue to bill the customers for services within the City, but may elect to become part of the County-wide assessment for residential solid waste. • Termination clause will be based on Orange County's contract with the assigned hauler. • The City will not have a franchise or contract with a private hauler. Orange County's current hauler collection plan includes five (5) service areas or zones. Each service area has been competitively bid and negotiated with a hauler. The current haulers for the service areas are as follows: Service Area Vendor Zone 1 Onyx Waste Services of Florida, Inc. Zone 2 Waste Management Inc. of Florida Zone 3 Republic Services of Florida LP Zone 4 Waste Management Inc. of Florida Zone 5 Republic Services of Florida LP Although each zone has been negotiated at a different annual compensation rate, using a compensation adjustment methodology, Orange County has equalized the annual rate for all customers through a MSTU program. The City of Ocoee falls within Zone 1 of the Orange County's current plan. However, Orange County reserves the right to assign the City to another hauler. Without the use of the 96-gallon carts and using only bags or 32-gallon cans, the current assessment rate as adopted by the Board of County Commissioners (BCC) is$146.06 per year, which is assessed on residential customers tax bills in unincorporated Orange County. The current annual rate translates to$12.17 per customer per month. This rate is set annually by the County Commission and may be increased or decreased. With the use of the 96-gallon carts, which requires the private haulers to modify their current collection rolling stock with mechanical arms, the rate will be$15.24 per customer per month. This rate includes collection of yard waste on Wednesdays only throughout the City. If yard waste is collected throughout the week, the rate is$16.24 per customer per year. The rates shown here for Option B do not include the additional administrative costs, which will be incurred by the City. 3 Option C. City Continues with the current in-house operations In order to stay in business, City must consider the actual cost of the in-house operation while providing for the future growth (new routes) as well as replacement of the existing fleet and supporting equipment. It is anticipated that a new route is required for approximately every 2 years. Therefore, a new truck ($150,000) and a new driver($55,000) are required every 2 years. The current fleet of 9 trucks (7 garbage trucks and 2 recycling trucks)should also be systematically replaced after the fifth year of service but no more than 7 years to ensure delivery of the expected level-of-service, maximizing salvage value, and minimizing repair costs. A financial analysis of the historical costs versus revenues was conducted to provide the basis for formulating a true customer rate. This analysis identified the various cost components (personnel, operating, and capital)for the proceeding fiscal years. Adjustments for capitalization of new routes and replacement rolling stock were made where necessary for inclusion within the rates. The true cost of the in-house operation is calculated at$18.25 per customer per month through the end of fiscal year 2008-09. If Option C is chosen, the following actions and expenditures are recommended: • Complete purchase of the truck currently on hold at nearly$146,000 • Replace 2 truck in the current fiscal year$300,000 from R & R funds • In FY 2004-05 budget, replace 1 truck at$150,000 and add 1 new truck ($150,000) and 1 new driver($55,000), for the total cost of$355,000. The City currently receives a 20% Franchise Fees from Commercial Franchise for the collection of commercial waste within the City limits. For the fiscal year 2002-2003, a total of$139,768.21 was collected and deposited in General Funds. In addition to the Franchise Fees, the City receives revenues generally referred to as the "Delta"which is deposited into the Solid Waste Funds. The revenue is the difference between the rates established by Ordinance for the commercial customers versus the contract fees for the current franchisee. In FY 2002-03, City received $153,579.38 from this revenue source. ECONOMIC ANALYSIS: For Options A and B, in addition to the base rate, there are other cost components that consist of the administrative costs associated with the program and the costs of the current City's Yard and Bulky Waste Collection and Disposal. Table 2 includes a summary of the calculations with the addition of the other cost components. The calculation shown in Table 2 is for FY 2004-05 rates. 4 Table 2. FY2003-04 Rate Comparisons Rate Option A Option B Option C Component Private Hauler Orange County City City RFP Interlocal Operation Onyx,Alt.1 Florida 32-gallon 96-gallon Recycling Base rate 11.63 10.98 12.17 15.24 18.25 Yard waste 1.68 1.68 0 0 0 Admin. 2.69 2.69 1.30 1.30 0 Total 16.00 15.35 13.47 16.54 18.25 The rate for the Interlocal Agreement with Orange County is established by the Board of County Commissioners and may increase or decrease. Historically, the rate has declined in the recent years. The current City's Yard & Bulky waste contract will expire in the end of August 2006, with an option to extend for an additional 2 years. The City may evaluate its options for this service as the expiration date nears. If Option B is chosen, City may chose to negotiate the immediate termination of the current Yard & Bulky Waste contract since the services are included. The calculations shown in Table 4 assume termination of the contract for Option B. Table 3 is a summary of projected rates for the current fiscal year and as projected for the next 5 years. Table 3. Comparison of Rates per Customer per Month Options FY FY FY FY FY FY 03-04 04-05 05-06 06-07 07-08 08-09 Option A Onyx,Alt. 1 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 Florida Recyding $15.35 $15.35 $15.35 $15.35 $15.35 $15.35 *Option B 32-gallon $13.47 $13.47 $13.74 $14.01 $14.29 $14.58 96-gallon $16.54 $16.54 $16.87 $17.20 $17.55 $17.90 Option C Projected rate $18.25 $18.25 $18.25 $18.25 $18.25 $18.25 *Assumes a 2%increase per year after FY 2004-05 Administrative Costs The administrative costs associated with the options differ for the Orange County Interlocal versus the private hauler option. This is primarily due to the costs to the City for the management of the program including staff, equipment, and containers. The cost of customer billing remains similar for both options at this time. Option A will require one (1) Manager, one(1) Inspector, and one (1) customer service member for the management of the program. Considering all other costs such as vehicle, fuel& maintenance, communication, insurance, billing, and auditing, the in-house administrative cost is estimated at$2.69 per customer per month. Option B will require less in-house staffing which will include one-half(1/2) of an Inspector and one (1) customer service member will be needed for the management of the program. Considering all other costs such as vehicle, fuel &maintenance, communication, insurance, billing, and auditing, the in-house administrative cost is estimated at$1.30 per customer per month. 5 Method of Payment Under all 3 options, the City will continue monthly customer billing as currently exists. Under Option B, the current Orange County plan is designed for the customer charges to be assessed on their annual tax bill. This option will also be available to the City, at City's option, provided sufficient notice is served to the Orange County Property Appraiser and Tax Collector. PROGRAM COMPARISON: In addition to the actual costs of each program as discussed under economic analysis, each option presents a set of unique characteristics to be evaluated. These characteristics are sometime not readily quantifiable as the actual costs or rates as summarized below. Option Advantages Disadvantages • Same service as in-house now • Less City control • Rate is not increased • Lower level-of-service expectations A • 96-gallon carts are used • Less customer friendly than in-house option • City administers contract • Anticipate contractual issues • No reoccurring capital costs • Minimum worker's compensation issues • Strong contractual requirements • Same service frequency • City does not administer contract • Higher waste volumes allowed • Less control by City g • Have option to use of 96-gallon carts • Not designed for 96-gallon cart operation • Lower City administrative costs • Collection routes and/or days may change • No reoccumng capital costs • W/96-gallon cart, rate is higher than Option A • Minimum worker's compensation issues • Strong contractual requirements • City retains complete control • Higher costs and rates • 96-gallon carts are used • Reoccurring capital costs C • Better customer care by City staff • Addition of new routes • Response is faster to customer issues • High worker's compensation • If subsidized, impacts other vital programs RECOMMENDATION: Based on staff evaluation of the available options as presented in this report, the following conclusions are made: 1. If the current method of collection using the 96-gallon carts is desired, the most economical option is Option A, which entails contracting a private hauler through the RFP process. This option guarantees "no increase" in the current rate for the next 5 years with City providing the containers as in the current in-house operation; and City retains control of the contract. 6 The selection committee has short-listed the top 2 haulers for the consideration by the City Commission as described earlier in this report. If this option is selected, staff requests that the RFP equipment age requirements be lifted for a period of 90 days from the award to allow the haulers to begin operation within 30-days of the award date. 2. If there is no preference for the 96-gallon carts, then the most economical option is Option B, which entails executing an Interlocal Agreement with Orange County to provide the services. Under this option, there are substantial cost savings to the City as described earlier in this report. It should be noted that under this option, the administration and enforcement of the contract provisions with the hauler would remain with Orange County. 3. If continued in-house operation is desired, a rate increase and implementation of the rolling stock replacement program as described earlier are required. From a level-of- service standpoint, this option will probably yield the best and most responsive customer care. Attachments: Orange County Interlocal Fleet Report Administrative Cost Calculations RFP Evaluation Form RFP Bid Tabulation 7