Public Works Department October 2016 Sanitation Rate Study Public Works Department October 2016

Residential Sanitation Staffing And Vehicles Purpose: Provide full service to 15,688 single-family residences and bulk/junk collection to multi-family accounts and apartment complexes. We also collect garbage at approximately 434 businesses that utilize carts Staffing: Residential Sanitation consists of 34 employees High percentage of employees participate in defined benefit plan One state inmate crew of 5 One temporary labor crew of 3 The Residential Sanitation fleet: 11 rear loaders 9 clam trucks 7 side loaders 3 crew cab trucks 5 regular pick up trucks

Residential Sanitation Services Residential customers receive: Once a week household garbage collection 4 automated side loader routes 4 rear loader routes Once a week yard waste collection 4 clam shell routes Once a week junk/bulk collection (such as furniture, appliances, mattresses, etc.) 2 clam shell trucks Single stream curbside recycling (contracted out) Weekly tire collection and two tire amnesty days per year Weekly pallet collection Weekly shopping cart collection Sharps container service (as requested) Two household hazardous and electronic waste amnesty days a year Daily litter collection (1 state inmate crew and 1 temporary labor crew) Backdoor collection for medical waiver customers

Residential Garbage Collection 1 person automated side loaders Collect garbage placed in city-owned carts 2 person rear loaders Collect garbage placed in city-owned carts in areas where side loaders can’t access and businesses with carts Collect small items placed on the ground outside of the carts

Residential Yard Waste Collection 2 person rear loaders collect small yard waste piles 1 or 2 person clam shell trucks collect larger piles of yard waste and debris Yard waste is placed at the curbside: Loose In biodegradable bags In personal cans not to exceed 32 gallons and 50 pounds Yard waste or debris piles in excess of 4’ x 5’ x 6’ may be subject to a “billable load” (minimum is $41.25)

Clam Shell Trucks Clam shell trucks are used for collecting the following: Large yard waste and debris piles Junk and bulk items Sweeper dump piles Wood pallets Storm debris clean up

Current Residential Rates Single-family $21.70 per month Multi-family rates $15.45 per month Bulk collection $41.25 minimum/per quarter load Appliance collection $12.50 each

Residential Revenues and Expenditures

Residential Budget History

Single-Stream Recycling Began April 2, 2012 Contract expires April 30, 2017 The contract began with 20,783 active accounts and is currently serving 22,287 active accounts 17,020 tons recycled to date According to Waste Pro, the estimated participation rate is 65% For the remaining 7 months of the contract, we will pay $262,095 At contract end, we will have spent approximately $2,161,313 for services from Waste Pro Recycling contract expires in 2017 (anticipate the current rate of $1.68 per active household to potentially double) Winter Haven $2.38 per month Auburndale $2.53 per month Pompano Beach $2.83 per month St. Pete $2.95 per month Venice $7.64 per month

Commercial Sanitation Staffing and Vehicles Purpose: Provide service to 3,237 accounts (including 905 shared accounts) utilizing dumpsters. We have approximately 2,278 dumpsters currently in the field. Staffing: Commercial Sanitation consists of 15 employees High percentage of employees participate in defined benefit plan The Commercial Sanitation fleet: 12 front end loaders 2 container (shuttle) trucks 1 pick up truck

Commercial Collection Services Businesses with dumpster service in Ocala must use the City collection service Apartments and multi-family homes are serviced by the Commercial division 8 routes are run Monday through Friday and 2 routes are run on Saturday between the hours of 3:15 a.m. and 11:15 a.m. Container (or shuttle) truck service is provided for hard to reach customers, such as those downtown

Commercial Revenues and Expenditures

Commercial Budget History

History No rate increases for 11 consecutive years (since 2005) Average Consumer Price Index increase since 2005 is 2.28 % Only 27 vehicles replaced in the past seven years (replacement policy called for 35 vehicles) $4.2 million transferred to the General Fund between 2011-2016, including $1 million in 2014. There is downward pressure on reserves from capital replacement needs ($4,263,566 in Fiscal Year 2017) Policy for Reserve Requirement reduced from 25% to 17% starting Fiscal Year 2017

History of Rate Increases

History of General Fund Transfers

Current Disposal Rates and Total Tonnage FY 2016 Disposal Cost Per Ton Tons Contract Expiration Class I $45.51 55,883 September 30, 2018 Class III $23.11 2,226 September 30, 2018 Yard Waste $17.00 13,380 February 18, 2019

Tons Taken to the Transfer Station

History of Tipping Fees

Diesel Fuel Cost per Gallon

Sanitation Fuel Expenditures Residential expenditure for 2005 based on available data.

Sanitation Revenues and Expenditures

Residential Rate Comparison Rates for basic services. Tallahassee collects yard waste every other week. Lakeland ($2.00) and Winter Haven ($2.38) charge extra for recycling Most of these cities limit and restrict yard waste and bulk collection or charge additional fees when those limits are exceeded Most also charge extra monthly fees for other services such as an additional cart or cart rollbacks

Commercial Rate Comparison

Options Option 1 Residential 3% increase effective January 1, 2017 ($117,000) 3% increase annually, 2018-2021 ($667,329) Commercial 9% increase effective January 1, 2017 ($324,000) 9% increase annually, 2018-2021 ($2,108,896) Requires $1 million interfund loan from OEU to be repaid over 5 years at 3% interest annually

Options Option 2 Residential 3% increase effective January 1, 2017 ($117,000) 3% increase annually 2018-2021 ($667,329) Commercial Adjust current rate structure effective January 1, 2017, an average increase of 16.5% for the 4x, 5x and 6x per week collections ($396,288) 9% increase annually 2017-2021 for service intervals of 1x, 2x and 3x per week ($1,927,100) 9% increase annually 2018-2021 for service intervals of 4x, 5x and 6x per week ($304,261) Requires $1 million interfund loan from OEU to be repaid over 5 years at 3% interest annually

Options 1 and 2 Residential Rates - Proposed 3% Increase

Options 1 and 2 Proposed Residential Rates

Option 1 Commercial Rates – Proposed 9% Increase

Option 1 Proposed Commercial Rates

Option 2 Proposed Commercial Rates

Staff Recommendations Option 2 Residential 3% increase effective January 1, 2017 ($117,000) 3% increase annually 2018-2021 ($667,329) Commercial Adjust current rate structure effective January 1, 2017, an average increase of 16.5% for the 4x, 5x and 6x per week collections ($396,288) 9% increase annually 2017-2021 for service intervals of 1x, 2x and 3x per week ($1,927,100) 9% increase annually 2018-2021 for service intervals of 4x, 5x and 6x per week ($304,261) Requires $1 million inter-fund loan from OEU to be repaid over 5 years at 3% interest annually Service Options Monthly charge for additional cart Charge for pallet collection Increase rates for businesses with carts Increase minimum rate for shared dumpsters

Service Option Recommendations Current Proposed Estimated Annual Revenue Monthly fee for additional cart $53 (one time) $10.85 $10,000 Pallet collection charge $0 $3.00 each $50,000 First 5 no charge Monthly fee businesses with carts $33.75 for 2 $36.79 $20,000 $19.44 each extra $21.19 each extra Monthly rate for shared dumpsters $23.39 $25.50 $50,000

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