HomeMy WebLinkAbout1997 02 10 Regular Item F.1
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COMMISSION AGENDA
ITEM F.!
REGULAR X
CONSENT
INFORMATIONAL
February 10, 1997
Meeting
MAR. R w M IDEPT
Authorization
REQUEST: City Manager requesting the City Commission to consider approval of solid waste
collection, residential, and commercial rates and related provisions to the Solid
Waste Franchise Agreement with Browning Ferris Industries effective March 1,
1997,
PURPOSE: The purpose of this Agenda Item is to have the Commission approve residential and
commercial rates and contract terms and conditions with Browning Ferris Industries
to provide solid waste collection services for the City due to the impending
expiration of the current Franchise Agreement, and to establish customer rates for
residential and commercial services effective March 1, 1997,
NOTE: Resolutions and Ordinances will be furnished Thursday, February 6,
1997~
CONSIDERA TIONS:
Browning Ferris Industries, Inc, (B,F.I.) Is the City's current Solid Waste Collection
Contractor.
The current Contract with RF.I. terminates December 31, 1996,
The Commission authorized the City Manager to negotiate a new contract with
Browning Ferris Industries to determine if an agreement favorable to the City was
possible.
The City Manager with the assistance of OW Strickland, a Rate Consultant with
D.M.G. and Associates specializing in solid waste, have developed three alternative
"residential" service rates that offer the City substantial savings and that are
reflective of rates offered through competitive bidding,
Page 1
This analysis has determined no need to change "commercial rates" for bulk containers
and roll off except for the provision of an annual C.P.I. adjustment not to exceed 2.5%,
BENEFITS:
This renegotiated contract will provide the following benefits to the City and the
residents of Winter Springs:
A) The independent analysis which forms the basis of the new rate guarantees rates
at or near those that could be realized through bidding with the better contractors.
B) Advancement of the effective contract date from December 31, 1997 to March 1,
1997 through negotiations will save the City approximately as much as an
estimated $192,000 that would not be possible through bidding.
C) The new rate structure will provide revenues to the General Fund to help keep
property taxes down.
D) A new provision in the contract known as a "Favored Nations Clause" will
require B.F.I. to provide the City with a lesser rate provided to any other City in
the tri-county area during the term of the contract.
E) Provided there are no major unexpected increases in landfill disposal cost,
customer rates will remain the same for the entire period of the new contract.
F) A new performance bonus plan will provide a monetary inducement to the
contractor for providing extraordinary levels of service, quality and customer
satisfaction,
G) A new provision in the Franchise Ordinance will require that yard waste and
recyclable collection services not provided as a result of Holidays must be
provided no later than the first Saturday following the Holiday. This new
provision will eliminate the problem experienced this year with recycling
servIces.
H) The reliability and quality of service provided by one of the top two Waste
Collection Contractor's in the country,
Since Industrial Waste Services assigned the City's contract in December 1994 to
B.F.I., B.F.I. has improved services, and modernized equipment. Complaints
have been reduced to an average 7,6 complaints per month or .001% of customers
complaining per month,
Page 2
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Residential Contractor Rates:
Two methodologies were used to arrive at a desired rate structure for a five year contract for
garbage and yard trash collection, and recyclable collections.
1, The Cost Analysis method based upon industry cost data and including a
10% profit.
2, The Market Analysis method based upon available bid information and rates
from other communities.
Based upon this analysis the base or first year monthly rate of $8.01 for a five year contract
was established with the following terms:
a) an annual c.P.I adjustment not to exceed 2.5%.
b) the rate going into effect upon adoption of the new rate resolution and Franchise
Ordinance on March 1, 1997 rather than beginning January 1, 1998.
c) A favored nations clause requiring the contractor to adjust the City's rates to match
any rate the contractor provides to any other governmental entity in the Tri-
County area that is less than that provided for in this contract during the length
of the contract.
d) 100% disposal pass through as provided in the previous contract.
Recognizing that lengths of contracts are valuable to the solid waste industry, the staff and
consultant developed a 7 and 9 year option to provide an incentive for a reduced rate as
follows:
Five Year Seven Year Nine Year
Contract Contract Contract
Garbage 4,95 4,72 4.64
Yard Waste 1.38 1.34 1.33
Recycling 1.68 1.60 1.58
Total 8,01 7.66 7.55
Under the provisions of the existing and proposed Contract the contractor is entitled to a
100010 pass through of the cost of disposal. Based upon acceptable proof of the disposal cost
burden of the contractor staff is recommending adjustment of the pass through from $3.97
to $4.10 per household per month, Disposal rates are note expected to increase appreciably
in the future. The County believes that privatization of the landfill may result in a rate
reduction,
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Accordingly, the total monthly rate for the new rate and disposal fee would be as follows:
Five Year Seven Year Nine Year
Contract Contract Contract
Garbage 4.95 4.72 4.64
Yard Waste 1.38 1.34 1.33
Recycling 1.68 1.60 1.58
Total Collection Rate 8.01 7,66 7.55
Disposal Pass Through 4.10 4,10 4.10
Total CollectionfDisposal Fee 12.11 11. 76 11.65
The first year savings on the recommended alternative contractor rates would be as follows:
Recommended Recommended Recommended
5 Year 7 Year 9 Year
Contract Contract Contract
Rates Rates Rates
Recommended Monthly Collection/Disposal Rate 12.11 11.76 11.65
Existing Monthly ColIection/Disposal Rate 13,68 13,68 13.68
1.57 1.92 2.03
X 7900 Accounts= 12,403 15,168 16,037
X 12 Months= 148.863 182.016 192.440
Total First Year Contract Savings 148,863 182,016 192,440
Comment has been provided to the staff regarding the favorable rates of the recently negotiated
agreement with the contractor providing service to the City of Casselberry.
The Casselberry contract is a 5 year contract with an annual C.P.I. adjustment as demonstrated
below. The recommended rate for the City of Winter Springs appears more favorable than that of
the City of Casselberry.
Proposed
5 Year Contract
Winter Springs
Current
5 Year Contract
Casselberry
GarbageN ard Waste
Recycling
Disposal
Total
6.33
1.68
....!1Q
12.11
8.72
2,00
1.80
12.52
Page 4
Commercial Contract Rates
1) Commercial Contract Rates are currently reflective of those that could be expected from
a Bid. As a result the current rates are not recommended to be changed.
2) It is recommended the annual c.P.!. adjustments not to exceed 2.5% in anyone year be
applied to the commercial rates as with the residential rates.
Residential Customer Rates
The next obvious question for the Commission to consider is what to do with the
saving from the new residential contractors's rates. In order to deal effectively with this
question the Commission needs to first understand the following:
A. Utilization of Savings- Administrative Cost Recovery
Unlike most cities and good business practice, the current 13.68 monthly rate billed to
customers does not include any provisions for the City to recover the cost of customer
service expenses such as administrative overhead, billing, complaint management,
customer inquiries.
The administrative cost to the City for billing, complaints management, customer
inquiries and administrative overhead is estimated to be approximately $60,000 or
$5,000 per month. Based upon 7.900 accounts this would represent a cost of
approximately ,65 cents per bill.
B. Utilization of Savings - Franchise Fee
Unlike many cities and good business practice the current 13.68 monthly rate billed to
customers does not include a franchise fee or other instrument for the privilege of doing
business in the City and for the privilege of having the protection of an exclusive
franchise. Franchise fees are used to pay for other City needs thus helping to keep
property taxes down,
A $ .35 per month Franchise Fee would raise approximately $33,000 for the General
Fund in year one of the contract.
C. Utilization of Savings - Rate Stabilization
Each of the three proposed alternative rate structures utilized sufficient savings to
maintain rates at their current levels for the full term of the new contract period.
Tables A,B, and C provides proforma statements for the three alternative rate structures
incorporating administrative cost recovery, franchise fees and rate stabilization for the
period of the contract.
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FUNDING:
Funding is provided through the User Rates and changes discussed herein effective
March 1, 1996.
RECOMMENDATIONS:
r. Staff recommends the Commission choose one of the residential rate structure
alternatives included in the residential tables as follows:
A. Table A - 5 Year Residential Rate
B. Table B - 7 Year Residential Rate
C. Table C - 9 Year Residential Contract
n. Staff recommends approval of the commercial rate in Table 4. This is the same as the
current rate structure but including a 2.5% anImal c.P.!. adjustment.
In. Additional tenus and conditions:
Staff recommends the Commission approve all of the following additional terms and
conditions and instruct staff to amend the existing Franchise Agreement to reflect these
provIsIons.
A. The contract will become effective March 1, 1997.
B. The contract shall include a favored nations clause providing that the contractor will
adjust Winter Springs rates equal to any lesser rates the contractor provides to any other
municipal entity in Orange Osceola and Seminole Counties within the duration of the
Winter Springs Contract.
C. The contractor shall be provided an annual c.P.I. rate adjustment not to exceed 2.5%
beginning January 1, 1998 for the preceding 12 months and continuing through the
duration of the Contract.
D. The contractor shall be provided a 100% disposal pass through based upon proof of
cost as provided in the current Contract.
E. The contractor shall be required to provide a make-up collection date for yard trash
and recycling collection days missed due to Holidays on the first Saturday following the
Holiday, and to provide customer notification of said make-up collection by endorsement
in a local newspaper and printed notice at each residence.
F. All other provisions of the current Contract that are not in conflict with items A, B, C,
and D above,
Page 6
.' IMPLEMENTATION:
The provisions of the revised Contract shall be effective February 1, 1997.
ATTACHMENTS:
1) Table A- 5 Year Residential Rate
2) Table B- 7 Year Residential Rate
3) Table C- 9 Year Residential Rate
4) Table D - Commercial Rate
5) DMG Rate Analysis Report
COMMISSION ACTION:
Page 7
TABLE "A"
SOLID WASTE 5 YEAR PROFORMA
CURRENT CUSTOMER RATE AT 13.68
ANNUAL INCREASE OF 300 CUSTOMERS PER YEAR AND NOT TO EXCEED 2.5% C.P.I. INCREASE PER YEAR
SUMMARY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
REVENUES $1,298,864 $1,349,312 $1,398,960 $1,447,808 $1,495,856 $6,990,800
EXPENSES $1,254,828 $1,321,729 $1,390,582 $1,463,954 $1,536,916 $6,968,009
SURPLUS (DEFICIT) $44,036 $27,583 $8,378 ($16,146) ($41,060) $22,791
BEGIN YR. FUND BAL. ~ $44 036 $71.619 $79.998 $63.851 ~
END YR. FUND BAL. $44,036 $71,619 $79,998 $63,851 $22,791 $22,791
REVENUES
MO.CUST. RATE $13.68 $13.68 $13.68 $13.68 $13.68
X CUST. ACCTS. 7900 8200 8500 8800 9100
MONTHLY REVENUES $108,072 $112,176 $116,280 $120,384 $124,488 $581 ,400
X MONTHS 12 12 12 12 12 12
ANNUAL BILL $1,296,864 $1,346,112 $1,395,360 $1,444,608 $1,493,856 $6,976,800
INT. EARNED $2.000 $3.200 $3.600 $3.200 $2.000 $14.000
TOTAL REV. $1,298,864 $1,349,312 $1,398,960 $1,447,808 $1,495,856 $6,990,800
EXPENSES
MO. COLLECTION RATE $8.01 $8.01 $8.21 $8.42 $8.63
X ANNUAL C.P.1. INCREASE 2.5% 2.5% 2.5% 2.5%
C.P.1. INCREASE AMOUNT $0.20 $0.21 $0.21 $0.22
ADJ. MO. COLLECT RATE $8.01 $8.21 $8.42 $8,63 $8.84
MO. PASSTHROUGH (DISPOSAL) * $4.10 $4.10 $4.10 $4.10 $4.10
MO. ADM. COST $0.65 $0.65 $0.65 $0.65 $0.65
MO. FRANCHISE FEE $0.35 $0.35 $0.35 $0.35 $0.35
TOTAL MO. EXPENSE $13.11 $13.31 $13.52 $13.73 $13.94
X CUSTOMER ACCTS. 7900 8200 8500 8800 9100
MONTHL Y EXPENSES $103,569 $109,144 $114,882 $120,788 $126,868 $575,251
X MONTHS 12 12 12 12 12 12
SUBTOTAL ANNUAL EXP. $1,242,828 $1,309,729 $1,378,582 $1,449,454 $1,522,416 $6,903,009
ANNUAL PERFORM. BONUS $10,000 $10,000 $10,000 $12,500 $12,500 $55,000
ANNUAL PERFORM. SURVEY $2.000 $2.000 $2.000 $2.000 $2.000 $10.000
TOTAL ANNUAL COST $1,254,828 $1,321,729 $1,390,582 $1,463,954 $1,536,916 $6,968,009
NOTE:
ADMINISTRATIVE COST INCOME $61,620 $63,960 $66,300 $68,640 $70,980 $331,500
FRANCHISE FEE INCOME $33.180 $34.440 $35.700 $36.960 $38.220 $178.500
TOTAL INCOME TO CITY $94,800 $98,400 $102,000 $105,600 $109,200 $510,000
* DISPOSAL RATES ARE EXPECTED TO REMAIN STEADY OVER THE NEXT FEW YEARS. UNEXPECTED INCREASES COULD EFFECT RATES.
TABLE "B"
SOLID WASTE 7 YEAR PROFORMA
CURRENT CUSTOMER RATE AT 13.68
ANNUAL INCREASE OF 300 CUSTOMERS PER YEAR AND NOT TO EXCEED 2,5% C,P.1. INCREASE PER YEAR
SUMMARY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 TOTAL
REVENUES $1,300,114 $1,352,012 $1,403,200 $1,453,633 $1,503,256 $1,551,904 $1,599,552 $10,163,671
EXPENSES $1,221,648 $1,286,428 $1,353,074 $1,424,153 $1,494,729 $1,567,371 $1,644,650 $9,992,053
SURPLUS (DEFICIT) $78,466 $65,584 $50,126 $29,480 $8,527 ($15,467) ($45,098) $171,618
BEGIN YR .FUND BAL. i(>- $78.466 $144.050 $194.176 $223.657 $232.184 $216.717 ~
END YR. FUND BAL. $78,466 $144,050 $194,176 $223,657 $232,184 $216,717 $171,618 $171,618
REVENUES
MO.CUST. RATE $13.68 $13.68 $13.68 $13.68 $13.68 $13.68 $13.68
X CUST. ACCTS. 7900 8200 8500 8800 9100 9400 9700
MONTHLY REVENUES $108,072 $112,176 $116,280 $120,384 $124,488 $128,592 $132,696 $842,688
X MONTHS 12 12 12 12 12 12 12 12
ANNUAL BILL $1,296,864 $1,346,112 $1,395,360 $1,444,608 $1,493,856 $1,543,104 $1,592,352 $10,112,256
INT .EARNED $3.250 $5.900 $7.840 $9.025 $9.400 $8.800 $7.200 $51.415
TOTAL REV. $1,300,114 $1,352,012 $1,403,200 $1,453,633 $1,503,256 $1,551,904 $1,599,552 $10,163,671
EXPENSES
MO. COLLECT ION RATE $7.66 $7.66 $7.85 $8.05 $8.25 $8.46 $8.67
X ANNUAL C.P.1. INCREASE 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
C.P.1. INCREASE AMOUNT $0.19 $0.20 $0.20 $0.21 $0.21 $0.22
ADJ. MO. COLLECT. RATE $7.66 $7.85 $8,05 $8.25 $8.46 $8.67 $8.88
MO. PASSTHROUGH (DISPOSAL) $4.10 $4.10 $4.10 $4.10 $4.10 $4.10 $4.10
MO. ADM. COST $0.65 $0.65 $0.65 $0,65 $0.65 $0.65 $0.65
MO. FRANCHISE FEE $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35
TOTAL MO. EXPENSE $12.76 $12.95 $13.15 $13.35 $13.56 $13.77 $13.98
X CUSTOMER ACCTS. 7900 8200 8500 8800 9100 9400 9700
MONTHL Y EXPENSES $100,804 $106,202 $111,756 $117,471 $123,352 $129,406 $135,638 $824,629
X MONTHS 12 12 12 12 12 12 12 12
SUBTOTAL ANNUAL EXP. $1,209,648 $1,274,428 $1,341,074 $1,409,653 $1,480,229 $1,552,871 $1,627,650 $9,895,553
ANNUAL PERFORM. BONUS $10,000 $10,000 $10,000 $12,500 $12,500 $12,500 $15,000 $82,500
ANNUAL PERFORM. SURVEY $2.000 $2.000 $2.000 $2.000 $2.000 $2.000 $2.000 $14.000
TOTAL ANNUAL COST $1,221,648 $1,286,428 $1,353,074 $1,424,153 $1,494,729 $1,567,371 $1,644,650 $9,992,053
NOTE:
ADMINISTRATIVE COST INCOME $61,620 $63,960 $66,300 $68,640 $70,980 $73,320 $75,660 $480,480
FRANCHISE FEE INCOME $33.180 $34.440 $35.700 $36.960 $38.220 $39.480 $40.740 $258 720
TOTAL INCOME TO CITY $94,800 $98,400 $102,000 $105,600 $109,200 $112,800 $116,400 $739,200
* DISPOSAL RATES ARE EXPECTED TO REMAIN STEADY OVER THE NEXT FEW YEARS. UNEXPECTED INCREASES COULD EFFECT RATES.
TABLE "C"
SOLID WASTE 9 YEAR PROFORMA
CONTINUING CURRENT CUSTOMER 13.68 RATE
ANNUAL INCREASE OF 300 CUSTOMERS PER YEAR AND NOT TO EXCEED 2.5%C.P.I, INCREASE PER YEAR
SUMMARY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 TOTAL
REVENUES $1,301,372 $1,350,845 $1,400,330 $1,449,826 $1,499,335 $1,548,857 $1,598,393 $1,647,943 $1,697,508 $13,494,407
EXPENSES $1,211,220 $1,275,333 $1,341,286 $1,411,643 $1,481,470 $1,553,332 $1,629,802 $1,705,949 $1,784,349 $13,394,385
SURPLUS (DEFICIT) $90,152 $75,512 $59,043 $38,183 $17,865 ($4,476) ($31,409) ($58,007) ($86,841 ) $100,022
BEGIN YR. FUND BAL. ~ $90.152 $165.664 $224.707 $262.890 $280.755 $276.279 $244.870 $186864 ~
END YR. FUND BAL. $90,152 $165,664 $224,707 $262,890 $280,755 $276,279 $244,870 $186,864 $100,022 $100,022
REVENUES
MO.CUST. RATE $13.68 $13.68 $13.68 $13,68 $13.68 $13.68 $13.68 $13.68 $13.68
X CUST. ACCTS. 7900 8200 8500 8800 9100 9400 9700 10000 10300
MONTHLY REVENUE $108,072 $112,176 $116,280 $120,384 $124,488 $128,592 $132,696 $136,800 $140,904 $1,120,392
X MONTHS 12 12 12 12 12 12 12 12 12 12
ANNUAL BILL $1,296,864 $1,346,112 $1,395,360 $1,444,608 $1,493,856 $1,543,104 $1,592,352 $1,641,600 $1,690,848 $13,444,704
INT. EARNED $4.508 $4.733 $4.970 $5.218 $5.479 $5.753 $6.041 $6.343 $6.660 $49.703
TOTAL REV. $1,301,372 $1,350,845 $1,400,330 $1,449,826 $1,499,335 $1,548,857 $1,598,393 $1,647,943 $1,697,508 $13,494,407
EXPENSES
MO. COLLECT RATE $7.55 $7.55 $7.74 $7.93 $8.13 $8.33 $8.54 $8.76 $8.97
X ANNUAL C.P.1. INCREASE 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
C.P.1. INCREASE AMOUNT $0.19 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22 $0.22
ADJ. MO. COLLECT. RATE $7.55 $7.74 $7.93 $8.13 $8.33 $8.54 $8.76 $8.97 $9.20
MO. PASSTHROUGH (DISPOSAL) $4.10 $4.10 $4.10 $4.10 $4.10 $4.10 $4.10 $4.10 $4.10
MO. ADM. COST $0.65 $0.65 $0,65 $0.65 $0.65 $0.65 $0.65 $0.65 $0.65
MO. FRANCHISE FEE $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35
TOTAL MO. EXPENSE $12.65 $12,84 $13.03 $13.23 $13.43 $13.64 $13.86 $14.07 $14.30
X CUSTOMER ACCTS. 7900 8200 8500 8800 9100 9400 9700 10000 10300
MONTHLY EXPENSES $99,935 $105,278 $110,774 $116,429 $122,247 $128,236 $134,400 $140,746 $147,279 $1,105,324
X MONTHS 12 12 12 12 12 12 12 12 12 12
SUBTOTAL ANNUAL EXP. $1,199,220 $1,263,333 $1,329,286 $1,397,143 $1,466,970 $1,538,832 $1,612,802 $1,688,949 $1,767,349 $13,263,885
ANNUAL PERFORM. BONUS $10,000 $10,000 $10,000 $12,500 $12,500 $12,500 $15,000 $15,000 $15,000 $112,500
ANNUAL PERFORM. SURVEY $2.000 $2.000 $2.000 $2.000 $2.000 $2.000 $2.000 $2.000 $2.000 $18.000
TOTAL ANNUAL COST $1,211,220 $1,275,333 $1,341,286 $1,411,643 $1,481,470 $1,553,332 $1,629,802 $1,705,949 $1,784,349 $13,394,385
NOTE:
ADMINISTRATIVE COST INCOME $61,620 $63,960 $66,300 $68,640 $70,980 $73,320 $75,660 $78,000 $80,340 $638,820
FRANCHISE FEE INCOME $33.180 $34.440 $35.700 $36.960 $38.220 $39.480 $40.740 $42 000 $43.260 $343.980
TOTAL INCOME TO CITY $94,800 $98,400 $102,000 $105,600 $109,200 $112,800 $116,400 $120,000 $123,600 $982,800
* DISPOSAL RATES ARE EXPECTED TO REMAIN STEADY OVER THE NEXT FEW YEARS. UNEXPECTED INCREASES COULD EFFECT RATES.
"TABLE n"
CITY OF WINTER SPRINGS
COM:MERCIAL RATES
IX 2X 3X 4X 5X 6X
2yd 31. 70 63.39 95.07 126.78 158.48 190.17
3yd 47.54 95.08 142.62 190.16 237.70 285.24
4yd 63.39 126.78 190. 1 7 253.56 316.95 380.34
6yd 95.08 190.16 285.24 380.32 475.40 570.48
8yd 126.78 253.56 380.34 507.12 633.90 760.68
Whls - 6.00/mrh, Locks - 2.50 each/15.00 max, Gates - 2.50 each/15.00 max
Roll-otIs: 20 "" $130.00 30 = $140.00 40 = $155.00 plus dump $25.00 delivery
JAN 13 '97 10:54AM DAVID M GRIFFITH
P.2
SOLID WASTE COLLECTION
CONTRACT REVIEW
City of Winter Springs
Florida
January 13, 1997
DA VlD M. GRIFFITH & ASSOCIATES, L ro.
1100 Logger Court, Suite D-I00
Raleigh. North Carolina 27609
(919) 876-8042 FAX (919) 878.8592
e 1997. David M. Griffith & Associates, Ltd.
DMG
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JRN 13 'g7 10:55RM DRVID M GRIFFITH
P.3
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SUMMARY OF REVIEW
DMG
JAl'l 13 '97 1121: 55AM DAVID M GRIFFITH
P.4
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SUMMARY OF REVIEW
A. Summary
David M. Griffith & Associates, Ltd, (DMG) has reviewed the most recent revised
contract offered by BFt to provide collection for solid waste, including garbage, yard waste,
and recyclables, in accordance with the City of Winter Springs solid waste ordinance. The
revised offer by BF! was $8.15 per month per household based on a six year contract or
$7.65 per month per household based on a nine year contract beginning January 1, 1997. The
contract provided for a 100% of the previous year CPI adjustment effective January 1, 1998
not to exceed 2.5%.
DMG has many years of experience associated with solid waste and recyclable
collection throughout the southeast. Using this experience and infonnation from efficiency
studies, audits, and staffing studies perfonned for cities providing comparable services in
Florida, as well as other areas, DMG has provided in Appendix A, a suggested 1997 fee
schedule for each type of collection service with an adjustment made each year based on
100% of the previous year CPI, but not to exceed 2.5% in anyone year.
DMG reviewed the cost for disposal that is a pass through to the county, DMG's
comments are shown in Appendix B.
DMG reviewed the new front loader rates that SFI provided to the City of Winter
Springs for the collection of commercial waste from two cubic yard to eight cubic yard
containers on a frequency of one to six times per week. The rates include providing and
maintaining container and disposal cost. DMG compared the new rate,s to the cost of
providing the service by local units of government and fees charged by private enterprise in
other locations where cost studies have been performed, DMG considers the new rates for
front loader service at commercial establishments to be reasonable for the service provided.
B. Assumptions Used in Review
Costs are based on the following assumptions:
. Garbage collected twice per week at the curb from storage containers owned by
the homeowner.
. Yard waste collected once per week at the curb.
Winter Springs. Florida, Solid Waste Collection Contract R.eviow
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JA/'l 13 '97 10: 55AM DAVID M GRIFFITH
P.5
. Recyclables collected once per week from the curb in storage containers provided
by the City.
. Household fees are collected by the City.
. Commercial establishments pay directly to the contractor,
. A 10% profit is shown in the fees.
. 7,900 household units.
. Two household units per acre.
. Waste generated:
Lbs, per
Household Percent
Type of Waste per Day Tons of Waste
Garbage S.48 7,900 70%
Yard Waste 2.00 2,940 26%
Recyclables 0.30 428 4%
Totals 7,78 11,268 100%
. Recyclables revenue not included in fees.
Winter Springs, Florida. Solid Waste Collection Contract Review
2
= 7.: :',1
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JAN 13 '97 10: 56A/'1 DAVID M GRIFFITH
P.6
"
APPENDIX A
SUGGESTED 1997 FEE SCHEDULES
DMG
?~:~ ~: ;-?-3-3~~2
: : - : -: - '3 7 : ::: : I} t} ::' ),!
? C ':
JA/'l 13 '97 10:56AM DAVID M GRIFFITH
.'
GARBAGE COLLECTION
P.7
The costs are based on twice per week collection at the curb. The storage containers
are provided by the homeowner. The number of household units are 7,900 with an average
household generating one ton of garbage per year or 5.48 pounds per day.
Cost:
Labor
Fringe Benefits @ 33.8%
T ota! Labor
Non.Labor:
Trock operation & maintenance
Truck depreciation
Insurance, etc.
Total Non-Labor
Indirect Cost
Total Cost
Profit @ 10%
Total Cost & Profit
5 Year 7 Year 9 Year
Contract Contract Contract
$ 115,200 $ 115,200 $ 115,200
38,938 38,938 38,938
$ 154,138 $ 154,138 $ 154,138
128,770 $
51,429
68,464
$ 248,663 $
$ 3,792 $
$ 128,370 $
72,000
68,464
$ 268,834
$ 3,792
$ 426,764 $ 406,593 $
$ 42,676 $ 40,659 $
$ 469,440 $ 447,252 S
S Year Contract
$469,440 + 7,900 = $59.42 per year per household unit
$59.42 + 12 months"" $4.95 per month per household unit
Cost per ton for collection = $59.42
7 Year Contract
$447,252 -+- 7,900 = $56.61 per year per household unit
$56.61 -+- 12 months = $4.72 per month per household unit
Cost per ton for collection;;; $56.61
9 Year Contract
$440,180 .;- 7,900 := $S S, 72 per year per household unit
$55.72 -!- 12 months = $4.64 per month per household unit
Cost per ton for collection = $55.72
Winter Springs, Florida, Solid WlISte Collection Contract Review
? ? :; :~! ~ 1 j - S '7 '3 - ''3 '3 '; '2
128,770
45,000
68,464
242,234
3! 792
400,164
40,016
440,180
3
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? i~ '7
JAN 13 '97 10:56AM DAVID M GRIFFITH
P.8
YARD WASTE COLLECTION
The costs are based on once per week collection at the curb. The number of household
units are 7,900 with an average household generation of ,372 tons per year or 14.31 pounds
per household per week.
Cost:
Labor
Fringe Benefits @ 33.8%
Total Labor
NOD"Labor:
Truck operation & maintenance
Truck depreciation
Insurance, etc.
Total Non-Labor
Indirect Cost
Total Cost
Profit @ 10%
Total Cost & Profit
5 Year 7 Year 9 Year
Contract Contract Contract
$ 38,405 $ 38,405 $ 38,405
12,981 12,981 12,981
$ 51,386 $ 51,386 $ 51,386
$
42,791
9,143
8,319
60,253
3,792
$ 42,791
8,000
8,319
$ 59,110
$ 3,792
42,791 $
12,800
8,319
63,910 $
3,792 $
$
$
$ 119,088 $ 115,431 $ 114)88
$ 11,909 $ 11 ,543 $ 11,429
$ 130,997 $ 126,974 $ 125,717
5 Vear Contrad
$130,997 -;- 7,900 == $16.58 per household per year
$16,58 -;.. 12 months =- $1.38 per household per month
Cost per ton for collection == 544.56
7 Vear Contrad
$126,974 + 7,900 = $16.07 per household per year
$13.95 -;.. 12 months =- $1.34 per household per month
Cost per ton for collection"'" $43.19
9 Year Contract
$125,717 -+- 7,900 == $15.91 per household per year
$15.91 -+- 12 months = $1.33 per household per month
Cost per ton for collection = $15,91
Winter Sprin~ Florida, Solid Waste Collection Contract Review
4
JA/'I 13 '97 10: 57AM DAVID M GRIFFITH
P.9
RECYCLABLE COLLECTIONS
The costs are based on once per week collection at the curb. Storage containers are
provided by the City. The number of household units are 7,900 and generate 427 tons per
year or an average of 2,1 pounds per household per week,
5 Year 7 Year 9 Year
Cost: Contract Contract Contract
Labor $ 38,405 $ 38,405 $ 38,405
Fringe Benefits @ 33,8% 12,981 12,981 12,981
Total Labor $ 51,386 $ 51,386 $ 51,386
Non"Labor:
Truck operation &. maintenance $ 42,790 $ 42,790 $ 42,790
Truck depreciation 24,000 17,143 15,000
Insurance, etc. 22,822 22,822 22,822
Total Non-Labor $ 89,612 $ 82,755 $ 80,612
Indirect Cost $ 3,792 $ 3,792 $ 3,792
Total Cost $ 144,790 $ 137,933 $ 135,790
Profit @ 10% $ 14,479 $ 13,793 $ 13,579
Total Cost @ Profit $ 159,269 $ 151,726 $ 149,369
5 Year Contract
$1 S9,269 + 7,900 = $20.16 per hous~hold per year
$20.16 + 12 months = $1,68 per household per month
Cost per ton for collection = $372,12
7 Year Contract
$151,726 + 7,900 = $19.20 per household per year
$20.16 + 12 months:= $1.60 per household per month
Cost per ton for collection"" $354,20
9 Year Contract
$149,369 + 7,900"" $18.91 per household per year
$18.91 + 12 months'" $1.58 per household per month
Cost per ton for collection ='" $349.81
Note: Revenue from the sale of recyclables were not considered in costs.
Winter Springs. Florida., Solid Waste Collection Contract Review
,
JAN 13 '97 10:57AM DAVID M GRIFFITH
P.10
SUMMARY OF COSTS
(5 Year Contract)
Profit Housebold
Services U It its La bor Non-Labor Indirect @ 10% Total per Month
Garbage Collection 7,900 $ 154,138 S 268,834 S 3,792 S 42,676 $ 469,440 S 4.95
Yard Waste Collection 7..900 S 1,386 63,910 3,192 11.909 130,997 1.38
Total Waste Collection $ 20','24 $ 332,744 $ 7.584 S 54,585 $ 600,437 S 6.33
Recyclable Collection 1,900 S 51.386 S 89,612 3,792 $ 14,479 S 159,269 S 1.68
Total Cost $ 256',910 $ 422,356 $ 11,376 S 69.064 S 759,706 S 8.01
Disposal Cost S 4.10
Total cost per household per month $ 12.11
Note:
. No revonue snown for rec)'clnble sales.
. Labor based on:
Drivers @ $13.46 per hour
Collectors @ $9.62 per hour
Fringe Benefits @ 33.8%
. Non-labor based on a percentage of labor.
. Indirect cost based on SO.12 pcr household per month.
Winter Springs, Florida, Solid Wa:lte Collection Contract Review
6
JAN 13 '97 10:57AM DAVID M GRIFFITH
P.ll
. .
SUMMARY OF COSTS
(7 Year Contract)
Profit Household
Services Units L3bor Non-Labor In d Ireet @10% Total per Month
Oarb3ge ColIcction 7,900 $ 154,138 S 248,663 $ 3,792 S 40,659 S 447,252 S 4.72
Yard Waste Collection 7,900 5 l.386 60,253 3.792 11,543 126,974 1.34
Total Waste Collection S 205,514 $ 308.916 $ 7,584 $ 52,202 $ 574,226 $ 6.06
Recyclable: Collection 7.900 $ 51,386 $ 82,755 S 3,792 S 13.193 $ I 5 1 ,726 S 1.60
Total Cost $ 2S6,910 S 391,671 $ 11.376 S 65,99S $ 72S,95Z S 7.66
Disposal Cost S 4.10
Total cost per household per month S 11.16
Note:
. No revenue shown Ior recyclable sales.
. Labor based on:
Drivers @ S 13.46 per hour
Collectors @ $9,62 per hour
Fringe Benefits @ 33.8%
. Non-labor based on a percentage of labor.
. Indirect cost based on $0.12 per household per month.
Winter Springs. Florida, Solid W3StC Collection Contr~t Review
7
':' ':" - '.r .::':: - :: ";' ::: _ :; ~ ~ ..
JAI'I 13 '97 10: 57AM DAVID M GRIFFITH
P.12
SUMMARY OF COSTS
(9 Year Contract)
Profit Household
Services Units Labor Non-Labor Indlred @ 10% Totsl per Month
Oarbage Collection 7,900 S 154.138 S 242,234 $ 3,792 $ 40,016 $ 440,180 $ 4.64
Yard Waste Collaction 7,900 51,386 59,110 3,792 11,429 12S,717 1.33
Total Waste Collection S 205,524 $ 301,344 $ 7,584 $ 51,445 S 565,897 $ 5.97
Recyclable Collection 7.900 $ S 1,386 $ 80..612 $ 3,792 $ 13.579 $ 149,369 $ !.S8
Total Cost S 256;910 S 381.,956 $ 11,376 $ 65,024 S 715,266. S 7.55
Disposal Cost S 4.10
Total cost per household per month $ 11.65
Note:
. No revenue shown for recyclable sales.
. Labor based on:
Drivers @ $13.46 per hcur
Collectors @ 59.62 per bour
Fringe Benefits @ 33.8%
. Non-labor based on a percentage of labor,
. Indirect ccst based on $0.12 per household per month.
Winter Springs, Florida, Solid W3Ste Collection Contract Review
8
JA~1 13 '97 10: S8AM DAVID M GRIFFITH
P.13
. .
APPENDIX B
DMG'S COMMENTS
DMG
JAN 13 '97 10:58AM DAVID M GRIFFITH
P.14
APPENDIX B
The pass through fee for disposal is based on the total tonnage of garbage and yard
waste, DMO considers the $36 per ton for waste placed in a Subtitle. D landfill to be
reasonable. However, yard waste can be processed through a tub grinder for about $1 S per
ton. Using the present generation rate and fee schedule, the cost for 10,839 tons x $36 =
$390,204 cost for disposal per year, The cost ifa tub grinder was used would be (7,900 tons x
$36 per ton = $284,400) - (2,939 tons of yard waste @ $14 per ton = $44,095) for a total of
$328,485 with a savings of $61,719 to the City, not including any revenue from the sale of
mulch,
Winter Springs, Florida, Solid Waste Cotlcetion Contr3Ct Review
9