Presentation on theme: "CITY OF HENDERSON PUBLIC WORKS DEPARTMENT SANITATION DIVISION."— Presentation transcript:
CITY OF HENDERSON PUBLIC WORKS DEPARTMENT SANITATION DIVISION
1. Pursuant with the 2009-2010 Strategic Plan for studying possible areas for privatization (Action Plan 1-3) 2. Consistent with prior study performed in 2008 with the goal of converting to curbside sanitation service and possible conversion to privatization. WHY are we considering privatization of Sanitation and Recyclables and the Conversion from Backdoor to Curbside Service
3. Improve customer service. The use of curbside sanitation will allow for more consistency of service by performing the service at the same location and time required for collection. Waste Industries provides for only three observed holidays therefore there is less disruption to customer. Also, with curbside collection, there is a higher probability that the work can be continued in inclement weather as long as the roads are passable. Waste Industries has an automated phone calling system which alerts the customers of scheduled or unscheduled changes in the collection date due to weather or holidays. Customer service will also improve in other areas of Public Works where Street, Grounds Maintenance and Cemetery divisions will no longer be required to fill in for vacancies within Sanitation. Waste Industries has the advantage of pulling trucks from a larger fleet in the event of mechanical failures. 4. Avoid future direct costs of equipment capital purchases. Initial purchase of three (3) garbage trucks and roll out containers for sanitation and recycling equipment. Annual sequenced purchasing of one (1) truck per year. Garage staffing could be reduced to four (4) and one (1) frozen (unfunded) position could be eliminated plus more time would be available for preventative maintenance and repairs on remainder of City’s fleet. 5.Reduction in labor and liability cost such as workers compensation (i.e. needle sticks, dog bites, etc.
AGE OF VEHICLES WITHIN SANITATION FLEET Description FY 09-10FY 10-11FY 11-12FY 12-13FY 13-14FY 14-15FY 15-16 2005 GMC 45678NEW1 2004 GMC 5678NEW12 SPARE 2000 GMC 91011NEW234 SPARE 1994 GMC 15NEW1234 1992 GMC 17NEW12345 1992 GMC 17NEW12345 1997 Ford 1213NEW1234
Capital Expenses to be Incurred and Cost Increases/Savings Fiscal Year ItemsCost 09-10 None 10-11 1-Recycle Truck(side loader) 2-Garbage Trucks (side loader) 5,400 – 95 gallon carts (garbage 5,400 – 65 gallon carts (recycle OR 10,800 – 18 gallon bins (recycle $165,000 each = $495,000 Debt Service $97,000 annually for 6 years $44.55 ea (95 gal) and $37.85 ea. (65 gal) = $445,000 Debt Service $102,200 annually for 6 years OR $10.00 each - $108,000 Debt Service is $39,510 annually for 3 years Total Curbside Annual Debt w/2 Rollout Carts $199,200 Total Curbside Annual Debt w/1 Rollout Cart and 18 Gallon Recycle Bins $136,510 11-12 1-Garbage Truck (side loader) 3% increase for cost of living Staffing reduction – 2 positions 3people /truck to 2 people/truck – will be done by attrition $180,000 Debt Service $33,000 annually for 6 years Savings of $55,000 12-13 1-Garbage Truck (side loader) 3% increase for cost of living $180,000 Debt Service $33,000 annually for 6 years 13-14 1-Garbage Truck (side loader) 3% increase for cost of living $180,000 Debt Service $33,000 annually for 6 years
6.Improve and expand recycling program. As of October 1, 2009, State regulations have expanded to exclude items previously disposed of in the landfill and now must be recycled. By transitioning to a 65 gallon roll out cart, it is believed that recycling will increase by residents therefore reducing the amount of waste going to the transfer station. Wheeled carts are easier for citizens to get recycling to the curb than the existing 18 gallon bins. Items recycled would not be exposed to adverse elements and be subject to blowing of material from carts to street and neighboring yards. We currently recycle 20 tons a month vs. 335 tons of garbage a month to the transfer station or about 6%.
Tons (HIGHER IS BETTER) Garbage Reduction Goal 4627 4522 4386 4254 4126 4003 4000 4100 4200 4300 4400 4500 4600 4700 08-0909-1010-1111-1212-1313-14 Tons (LOWER IS BETTER) FISCAL YEAR
TERMS of the contract with Waste Industries 1) Waste Industries will enter a 10 year contract with 2 automatic 5 year renewals. This locks in a very favorable base price of $8.94 for household garbage and recyclables. 2) Waste Industries will use the Department of Labor and Statistics Consumer Price Index for annual cost adjustments. YearAnnual AvgJanFebMarAprMayJunJulAugSepOctNovDec 19918.104.22.168.8 3.0 2.8 22.214.171.124.5 20002.32.52.72.2 126.96.36.199.52.42.0 20012.12.22.0 1.9 2.0 188.8.131.52 20022.7 3.1 3.02.93.02.184.108.40.206.4 20033.22.42.32.9 220.127.116.11.18.104.22.168 20043.94.64.73.7 22.214.171.124.126.96.36.199 20053.52.7 3.0 3.3 3.63.74.04.34.54.3 20065.25.1 5.4 5.05.24.95.188.8.131.52.2 20074.75.35.0 184.108.40.206.220.127.116.11.8 20085.54.95.04.7 18.104.22.168.22.214.171.124.0 20093.64.24.04.4 126.96.36.199.42.3
Waste Industries will allow the City to provide fuel for its trucks that are strictly assigned to the City of Henderson. This will save on the Fuel Adjustment cost as well as actual fuel expense. It is estimated about 16,000 gallons of diesel fuel will be used. The City does not have to pay the road tax of $0.5455 and purchases fuel at a much cheaper rate per gallon than Waste Industries would. This equates to an annual savings of about $875.00. Consumer Price Index Seasonally Adjusted U. S, City Average Garbage and Trash Collection 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Year1999200020012002200320042005200620072008 Year Annual Average (Less is Better) 3)There will be an additional $4.00 each cost for additional roll out carts over the one (1) provided for sanitation and the one (1) provided for recycle. 4) Waste Industries will provide backdoor service to all citizens with verifiable disabilities (no other residents in household to roll cart to street) at no additional cost. Forms will be developed for resident to request service.
City of Henderson Public Works Department Post Office Box 1434 Henderson, North Carolina 27536 Phone 252-431-6118 Fax 252-431-0124 Backdoor Garbage Service Application In Lieu of Curbside Collection This application applies only to those households where no one in the household is physically able to roll the carts or carry recycle bins to the street for collection by the City/Private Contractor. APPLICANTS NAME: ____________________________________________ ADDRESS: ____________________________________________ TELEPHONE: ____________________________________________ Name and age(s) of person(s) living in this household NAME AGE 1. _______________________________________ ___________ 2. _______________________________________ ___________ Reason for backyard service request ( Be Specific) The above is a true and accurate statement, and reflects the existing conditions. I acknowledge the city’s right to investigate the information furnished. ____________________________________________________ The document to be renewed annually Applicant Signature ___________________________________________________________________________________________________________________________ CERTIFICATE OF DISABILITYTo: Public Works Department, City of Henderson From:______________________________________________________________________________________ Attending Physician Name – Address – Telephone Number In my opinion Mr/Ms. ______________________________________________ is physically unable to move the mobile garbage and/or recycle bin from their home to the curb. Such action would be detrimental to his/her health. _______________________________________ Physician Signature ___________________________________________________________________________________________________________________________ For Official Use Only APPROVAL: GRANTED ______________ DENIED____________________ ________________________________________ Public Works Director
COMPARATIVE SANITATION FEE Town of LouisburgBackdoor 2/wk$18.55 Town of FranklintonBackdoor 1/wk$16.00 Town of YoungsvilleCurbside 1wk$17.25 Town of WarrentonBackdoor 1/wk$24.00 Town of OxfordBackdoor 1/wk$20.55 None of these towns offer curbside recycle to their citizens.
RATE COMPARISONS BACKDOOR SANITATION SERVICE AND CURBSIDE RECYCLE CITY FY – 10FY – 11FY – 12FY - 13FY-14 RATE $ 9.91$13.79**$ 14.09$15.10##$15.55 REVENUE $634, 273$883,301$ 902,606$ 967,352$995,698 CONTRACTOR RATE SANITATION $ 11.25 RECYCLE $ 2.49 TOTAL $13.74 $13.74$14.15$14.57$15.01 REVENUE SANITATION $720,360 RECYCLE $159,440 TOTAL $879,800 $879,800$906,053$932,946$961,120 **City backdoor – FY -11 Adding staff to allow floaters in driving and puller positions for vacancies, vacations and illness FY – 11 Adding debt service to buy curbside recycle carts and 2 new garbage trucks and 1 new recycle truck ## City backdoor –FY – 12 & 13 Adding 1 new garbage truck to continue cycle of replacing older vehicles
RATE COMPARISONS CURBSIDE SANITATION AND RECYCLE SERVICE CITY FY – 10FY – 11FY – 12FY - 13FY-14 RATE $ 9.91 $13.32*** $ 12.78**** $13.07 $13.46 REVENUE $634, 273$853,301$ 818,789$ 837,352$861,871 CONTRACTOR #### RATE SANITATION $ 6.45 RECYCLE $ 2.49 TOTAL $ 8.94 $8.94 $9.21 $9.49 $9.77 REVENUE SANITATION $ 413,006 RECYCLE $159,440 TOTAL $572,446 $572,446$589,735$607,664$625,593 *** City curbside – FY 11 Adding debt service to buy curbside garbage and recycle carts and 2 garbage trucks and 1 recycle truck **** City curbside – FY 12 Elimination of 2 positions by attrition #### Contractor will supply 5,339 - 95 & 65 gallon carts for household garbage & recycle and put 3 new trucks on routes
Diesel Fuel - by City FY – 10FY – 11FY – 12FY - 13FY-14 Reduction for Fuel by Waste Industries to cost of service $51,225 Sanitation $0.60/$38,419 Recycle $0.20/$12,806 16,000 gallons @ $2.50/gallon $40,000 16,000 gallons @ $2.70/gallon $43,200 16,000 gallons @ $2.90/gallon $46,400 16,000 gallons @ $3.10/gallon $49,600 16,000 gallons @ $3.30/gallon $52,800 Road tax on Diesel is currently $0.5455/gallons which the City does not pay.
Existing Employees And Comparisons with Waste Industries For comparison purposes we requested from Waste Industries annual base pay rates for their employees. The City is aware that the pay scale is low for its employees and this in turn reflects in the cost of providing service now and in the future should pay scale adjustments be made. City Waste Industries CDL Drivers$21,169 $29,000 - $30,000 Helpers$19,783$19,760 - $20,800 Waste Industries Employees typically receive overtime pay each week. Pays a quarterly safety bonus to employees who have no workplace accidents. Maximum benefit is $300/quarter. Pays a Christmas bonus Has a 401(k) for employees – they match dollar for dollar up to 3% of salary and $0.50 per dollar for next 2% Insurance premiums are $143.00 bi-weekly for family coverage
Public Works Sanitation Division has 15 employees, 12 full time and 3 part time at the present time. Ten employees will be affected by the privatization of sanitation and recyclables. We have 3 temporary workers in place and as other employees resign/retire temporary workers will be hired in their place. Waste Industries will need to hire 3 workers with a commercial drivers license (CDL) for the routes in Henderson. Those employees will need to pass a background check and drivers license check (City requires same). The remaining 4 employees will be offered reassignment within the City or positions will be eliminated by attrition The remaining 5 employees will be the supervisor, brush truck workers, knuckle boom truck worker and spare worker.
Why am I paying $25.00 per month when sanitation/recycle service only cost $9.91? Where does the other $15.09 go? Sanitation Rate Increases/Decreases Fiscal Year(s)Increase/Decrease in Rate RateReason for Change 99-00$ -0-$ 16.00 01-02-03+ $ 4.00$ 20.002001 Revenue Bonds, Debt Service on Operations Center, Police Station Aycock Recreation Complex and State withheld funds. 05+ $ 5.00$ 25.00Recycling and Code Compliance 06+ $ 2.00$ 27.00General Revenues Increase 09- $ 2.00$ 25.00Sanitation collection moved to once per week 10$ -0-$ 25.00 Garbage/Recycle$9.9139.6%$627,660 Yard Debris/Leaf Collection$1.857.4%$117,290 Code Compliance$2.058.2%$129,970 General Fund Services$5.5222.1%$350,285 Bad Debt/Discounts$1.676.7%$106,195 Debt Service and ’01 State withheld Funds $4.0016%$253,600 $25.00100%$1,585,000 $ 1.00 on sanitation rate = $64,080
Where are we now? City staff has identified present and future cost relative to city continuing to provide same back door service and curbside and also provided comparisons relative to a private company provided the services. Recommendation City Council authorize public comment on the proposed service change from back door service to curbside collection and contracting with Waste Industries to perform the service. Upon completion of public comment and council deliberations, authorize the City attorney and staff to negotiate further details of the contract along with necessary ordinance changes.