Utilities Department June 26, 2007 Mandatory Refuse & Recycling Collection Services Tentative 2008 MSTU

BCC approval no later than July 15 th annually –Hauler Compensation –Tentative MSTU Final MSTU and hauler compensation rate adoption at first Budget Public Hearing in September Tentative 2008 MSTU

Program History –Began in 1985 –Four year term contracts; funded by MSTU –Annual review of haulers financials with no clear method to verify whether additional compensation was warranted –Level of compensation was the same for all districts, although density and demographics were different Tentative 2008 MSTU

Program History –Rates competitively bid by zone in 2002; seven year Franchise Agreements –5 zones of approximately equal size; each hauler limited to a maximum of two zones –Objective approach to calculating annual compensation by zone for collection services using the Consumer Price Index Tentative 2008 MSTU

Program History –Zones awarded to: Waste Management Incorporated (2) Republic Waste Services (2) Veolia Waste Services (1) –MSTU reduced from $ to $ per household per year Tentative 2008 MSTU

MSTU –Components Hauler Compensation Disposal Administrative Costs Tentative 2008 MSTU

Hauler Compensation: Service Zone Variance 1$ 76.63$ $2.25 2$110.15$ $3.22 3$ $ $3.31 4$102.80$ $3.01 5$ $ $3.27 Avg$103.64$ $3.18 Tentative 2008 MSTU

Disposal Per Household –Waste Generation Study –Adjusted disposal component Variance Tons Cost $49.81 $49.81 $0.00

Tentative 2008 MSTU Administrative Costs Variance $7.65$8.01 $0.36

Program Cost Summary 2008 Collection $ Disposal $ Admin $ 8.01 Total Cost $ Tentative 2008 MSTU

Program Cost Comparison Variance Collection $ $ $3.18 Disposal $ $ $0.00 Admin $ 7.65 $ $0.36 Total $ $ $3.54 Fuel $ 6.47 $ $6.47 Total $ $ $2.93 Tentative 2008 MSTU

Used program cash balances to offset increases as long as possible MSTU CostSubsidy 2002$ $ $ $ $ $ $146.06$ $ $ $ $ $153.00$ $ $167.57$ $ $167.57$ $0.00 Tentative 2008 MSTU

Considerations –The existing MSTU of $ exceeds 2008 projected costs of $ by $2.93 –The current Hauler contracts expire December 2008 and will be rebid –New contracts will go in effect January 2009 –Reserves should be maintained to mitigate costs related to the new program Tentative 2008 MSTU

Recommendation –Adopt the existing MSTU amount of $ per household per year for program year 2008 Tentative 2008 MSTU

Residential Collection Program Rate Comparison - Palm Beach County$ Seminole County$ Brevard County$ Lake County$ Hillsborough County$ Orange County (Proposed)$167.57

Tentative 2008 MSTU Residential Collection Program Rate Comparison - Ocoee$ Apopka$ Winter Garden$ Winter Park$ Orlando$ Orange County (Proposed)$167.57

Tentative 2008 MSTU

Tentative MSTU: $ per household per year Hauler Compensation: Zone $ $ $ $ $ Avg $ Tentative 2008 MSTU

Requested Action –Establish tentative Mandatory Refuse and Recycling program MSTU at $ –Set annual rate of compensation to the haulers as presented today Tentative 2008 MSTU

Utilities Department June 26, 2007 Mandatory Refuse & Recycling Collection Services Tentative 2008 MSTU