Summit County Curbside Feasibility Study February 2020 Introduction

Summit County Curbside Feasibility Study February, 2020

Introduction üPresentation is a high level overview of the Curbside Collections Feasibility Study üProvide a summary of findings üProvide for discussion with Council üObtain questions/direction for decision recommendations

Overview ØStudy completed by Gershman, Brickner & Bratton, Inc. ØStudy included Observations and Analysis ØCurrent contract, operations plan and implementation was evaluated to understand existing waste and recycle program. ØCosts were estimated for a New Collections Program ØCosts were estimated for continuing a contracted program ØCost Models were developed

Timeline Explanation New Program Ø Republic Services Contract ends June 2022 Ø Development of resources in-house could exceed two years (2020 Start) Ø Vehicles could take up to 1 year (2021) Ø Council presentation and discussion February 2020 Ø Response to Council inquiries and comments – March 2020 Ø Collections Program final recommendation – April 2020 RFP Process Ø Develop Program Options: July 2020 Ø Finalize RFP December 2020 Ø Advertise Jan/Feb 2021 Ø RFP due June 2021 Ø Award September 2021 Ø Gear up and procurement by company awarded RFP: 8 months+

Existing Waste Collections Program § Current contract with Republic Services through June 2022 § 24 employees – 14 work 50 hrs+ per week § Approximately 15 trucks § Operate 5 days per week § Service central and west sides of County (Bear River Area serviced by others) § Service 32, 400 waste and recycle carts and approx. 400 dumpsters/roll-offs § Primarily CNG Fleet – only one fill station in County § Current fee to County is approx. $3 M per year

Anticipating Future Contract Costs ØCurrent Contract - $3 M/yr ØEst. 2021 -22 cost $3. 3 M/yr (4. 5%/yr CPI) ØCost per std. residential unit $12. 32/month ØEst. 2021 -22 - $13. 46/mth üWIWMD Avg: $16. 80/mth üWIWMD Region Avg: $14. 25 üAnticipated RFP: $15. 00/mth üAnticipated 2023 -$3. 6 M/yr WIWMD = Wasatch Integrated Waste Management District

Estimating County Operations Costs for New Program § § § § § Trucks/Equipment (CNG vs. Diesel) Cart/Dumpsters Facility Requirements Insurance/ Liabilities/ Works/ Compensation Annual Maintenance Equipment, Trucks, Bins/Containers Population Changes Route Management System Administration and Supervision § § § § § Personnel Direct Personnel Salaries and benefits Vehicle and Equipment capital Cart replacement and repair One-time implementation costs Vehicle operating, maintenance and fuel Facility capital Public education Processing and disposal Other operating and maintenance costs

New Program Costs Pricing Structure 2019 COLLECTION OPERATIONS & CAPITAL EXPENDITURES Total Salaries & Wages PLUS Total Benefits (25 Employees) Replacement of Current Contracted Services COLLECTION OPERATIONS & CAPITAL EXPENDITURES Replacement of Current Contracted Services $1, 272, 877. 26 Contract MRF Recycling Processing Services $148, 840. 00 Travel and Training $5, 000. 00 Operations costs for 2 pick-ups (includes fuel) $12, 767. 30 DEQ per-ton landfilling fee (a. k. a. Dues and Subscriptions) $2, 480. 83 Operations costs for sanitation trucks (includes fuel) $177, 544. 09 Annual Cart Purchase $154, 879. 12 $10, 000. 00 Annual Maintenance of Carts $84, 707. 04 $130, 000. 00 Annual Amortization of Dumpsters $37, 785. 84 $1, 511. 43 Total Prof & Tech Services Maintenance Contracts (NOT fleet maintenance) Capital Expenditures (financing of truck yard, shop, land, fuel pumps) - Materials/Supplies General $2, 500. 00 Annual Interest Expenses on Dumpster Purchase Cell Phones $8, 000. 00 Annual Amortization of Sanitation Trucks $537, 142. 86 Uniforms Fuel (included in Operation costs for sanitation trucks) $10, 000. 00 Annual Interest Expenses on Sanitation Trucks Purchase $21, 485. 71 $175, 347. 51 Annual Amortization of Capital Expenditure for Truck Yard Annual Interest Expenses on Capital Expenditure for Truck Yard $140, 000. 00 Vehicle Maintenance Recycling Outreach and Education $48, 129. 00 Operations and Capital Costs $5, 600. 00 $3, 411, 882. 56* *Note: 2019 Costs

New Program Costs (continued) ØOperational and Capital adjusted cost - $3, 725, 860/yr ØAssumes no changes to current collection program ØCosts do not include insurance ØWaste Collections is consistently ranked among most hazardous professions – workers comp claims, illnesses, physical and mental stress ØTotal Annual Cost - >$4, 000/yr

County Operated Program Advantages üAsset Ownership üCustomer Service Assurance üCost Control üProgram Branding üFlexibility Challenges ü Staffing ü Cost of Wages – Ripple Effects ü Risk Management ü Workers Compensation ü Increased Exposure ü Lack of Reinforcements ü Expansion of Services by future Council or Administration

Contracted Services Advantages ü Administration ü Operational Resources ü Risk Avoidance ü Contract Accountability ü Third Party Buffer: • Complaints • Council/Administration Changes • Fixed Scope of Service Challenges ü Cost Control - CPI not predictable ü Service Issues and Responsiveness ü Less Flexibility to Change ü Messaging

Other Costs for County Operated Program üIntangible Costs – Call outs, missing cans, etc. üModification of Services § Potentially adding weekly recycle – Additional $1 M per year § Additional foul weather equipment to service challenging areas during snow events: $150, 000+ § Changes to Recycle Program – materials/bins/etc

FINDINGS ØA new program will increase costs over the short term (7 years) ØAdministering a collections division would require significant increases in staffing and capital outlay ØWage Disparity will impact County Operations ØThe heavy subsidy of waste collections by the general fund is in a stronger position with contracted services

Initial Services Changes ? Recycle Frequency ? Green Waste Collection ? Dumpster Days ? Define Residential Program Eligibility ? Other

Opportunity § 2022 - Opportunity regardless of direction for collections § § § Examine funding mechanisms Evaluate residential collections program and define Improve services Assert more influence in recycle program Encourage Alternative Program Submittals under RFP

Questions and Comments