HomeMy WebLinkAboutOrdinance 4415 ORDINANCE NO. 4415
AN ORDINANCE AMENDING CHAPTER 50: GARBAGE AND
TRASH, OF THE CODE OF FAYETTEVILLE, TO AMEND, INSERT,
AND DELETE CERTAIN DEFINITIONS; MODIFY RESIDENTIAL
SERVICE REQUIREMENTS AND ADOPT RATES.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1 . That §50.01 : Definitions, Code of Fayetteville is hereby amended by
deleting the definitions of Container, Garbage Can, and Residential Garbage Bags,
and inserting the following:
Bulky Waste. Items too large for collection in City-issued residential garbage
carts, such as appliances, furniture, large limbs, etc. Customers should contact the Solid
Waste and Recycling division for specific requirements.
Section 2. That the definition for Residential Service at §50.01 : Definitions,
Code of Fayetteville is hereby deleted and the following shall be inserted in its stead:
Residential Service. The collection and removal of garbage and trash from
single-family residences located on public roadways within the City of Fayetteville.
Collection of garbage and trash from residents on private roadways shall be at the
discretion of the City. The City shall only collect garbage and trash contained in City-
issued carts.
Section 3 . That §50.20(B) Service Requirements: Residential Service, Code of
Fayetteville is hereby deleted and the following shall be inserted in its stead:
§50.20 Service Requirements,
B. Residential Service.
1 , Residential Garbage Carts Required. Beginning January 2003,
customers receiving residential garbage and trash service shall use only the
residential garbage carts provided by the City. Only garbage and trash placed in
such residential garbage carts shall be collected by the City.
a. Additional garbage bag pickup. On the collection day, an
additional garbage bag (not to exceed 35 gallons in capacity, or 50 pounds in
weight), with an attached City permit sticker may be left beside the garbage cart,
and shall be picked up without additional charge. Each residential garbage cart
customer shall receive four (4) free City permit stickers per year.
.V •
b. Additional collection. Residential customers may request
additional garbage cart collection by appointment. Again, trash shall be placed in
the garbage cart, and an additional bag not to exceed 35 gallons in capacity, may
be placed in the top of an open garbage cart. An additional collection fee of $6.00,
plus the actual disposal cost based on cart size, shall be billed to the customer at
the next billing cycle. Bags placed outside of the garbage cart without City permit
stickers shall not be collected.
2. Location of Residential Garbage Carts. Residential garbage carts
shall be placed at a single collection point within three (3) feet of the curb, street
or alley line, where applicable, by 6:00 a.m. on mornings regularly scheduled for
garbage and trash collection, provided however, that garbage carts shall not be
placed at the curb, street or alley more than twelve (12) hours before regular
pickup, and shall be removed within twelve ( 12) hours thereafter. Alternate
collection points may be specified at the discretion of the City.
3. Exemptions. Residential customers who wish to apply for an
exemption of the required location of residential garbage carts may contact the
Solid Waste and Recycling division for an application. Final determination of
exemption status shall be made by the General Services Director or his designated
representative.
4. Rental Property Cart Service. Rental property owners listed on the
Major Owner List maintained by the City of Fayetteville Business Office, shall be
permitted 10 days of service immediately following the vacation of the rental
property for 1 /3 the normal monthly rate for the cart at the residence. The
landlord shall be responsible to contact the Solid Waste and Recycling division if
the cart is discovered missing during cleanup activities. The landlord shall be
responsible for the cart during these 10 days and shall be required to contact the
Solid Waste and Recycling division to arrange for cart pickup.
5. Storage/Maintenance. Residential garbage carts shall be stored and
maintained in a manner not likely to create a fire hazard, provide nesting space for
rodents and other vermin, or breeding sites for insects.
Section 4. That Chapter 50: Garbage and Trash, is hereby amended by inserting
the following:
§50.30 Bulky Waste/Community Cleanups.
A. Bulky Waste Pickup. Each customer shall be entitled to one ( 1 ) bulky
waste pickup per year. Customers shall arrange for bulky waste pickup by
contacting the Solid Waste and Recycling division to reserve a collection date.
Mobile home parks and apartment complexes consisting of four (4) or more units
shall not be eligible.
B. Community Cleanups.
1 . City-wide Earth Week Cleanup. During Earth Week of each year,
customers may dispose of normal residential waste at the Solid Waste and
Recycling facility free of charge.
2. Neighborhood Association/Ward Cleanups. Each City Council
Ward shall be eligible for up to four (4) community cleanups per year, provided
however, that each cleanup shall be coordinated by at least one ( 1 ) neighborhood
association, under the sponsorship of both of the Ward' s Alderpersons. The City
shall collect normal residential waste free of charge.
Section 5 . That §50.40(A) Rates for Services: Residential Service, Code of
Fayetteville is hereby deleted and the following shall be inserted in its stead:
§50.40 Rates for Services.
A. Residential service. Garbage and trash shall be collected from residential
customers one time each week for the following rates:
Garbage/Trash User Fee Schedule
Cart
Container Fixed Graduated Capitalization Monthly
Volume Fee Volume Fee Included in Base Rate
Rate
32 $5.76 $2.06 $0.37 $8.19
64 $5.76 $6.24 $0.49 $12.49
96 $5.76 $11 .43 $0.55 1 $17.74
PASSED and APPROVED this 17`s day of September, 2002.
APPRO
L l /f By: GG
DAN COODY a or
I
ODRUFF, City Verk
r�
NAME OF FILE: Ordinance No. 4415
CROSS REFERENCE:
Item # Date Document
1 09/17/02 Ordinance No. 4415
07/24/02 Departmental Correspondence - Commercial Waste and
2 Residentail Rates
07/17/02 Departmental Correspondence - Ordiance establishing
3 residential solid wast and recycling service rate structure
Departmental Correspondence - Waste Management of
01 /22/02 Northwest Arkansas - Large commerical & industrial account
4 and rolloff conatiner and compactors
5 07/26/02 lCompetition Update
6 08/20/02 Staff Review Form
7 09/20/02 City Clerk Memo on Ordiance 4415
NOTES:
FAYETTEVILLE .
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRFSPONDENCE
To: Mayor and City Council
From: Gary Dumas
Date: July 24, 2002
Subject: Commercial Waste and Residential Rates
Background
During the City Council Agenda Session of July 9, there was discussion of the
Residential Solid Waste Rate Structure report which included comments concerning the
impact that the City has had on the larger container (rolloff) market since entering this
business line. In January 2002, a memo was distributed to the City Council concerning a
comparison of the City bid proposal to local business vs. a Waste Management, Inc.
invoice. That memo is attached for your review, but in summary the Waste Management
invoice was approximately 42% greater than City's proposal and would have saved the
local business over $350 per month. Since the City's entry into this business line
(rolloffs) the competitive market has generally reduced costs to local large container
users, unless existing contracts have been enforced. (See attached email regarding
Rolloff Services, Inc. rates.)
Since this City Council Agenda Session of July 9 and the discussions concerning
commercial competitiveness, Rolloff Services, Inc. has approached some businesses
using small containers in an effort to solicit their business. At least one of these
businesses allowed Rolloff Services, Inc. to place and haul their small container wastes.
When contacted by the City, Rolloff Services, Inc. have refused to comply with the
Ordinance and have stated that the City Council discussion of July 9 has authorized their
actions by indicating that the entire commercial market is now an open competitive
marketplace. If this is factual, additional migration to private waste collectors is
anticipated due to the rate subsidy that the small container customer is now providing to
the residential consumer.
There currently exists Section 50.29 of the Code of Ordinances of the City of
Fayetteville, which prohibits private waste collections without a written contract with the
City. The City has historically served the small commercial container customer. Until
this past January, the City was not able to serve the large commercial container (rolloff)
needs of the local business and industry.
Discussion
As the City Council is aware, the small commercial container portions of the Solid Waste
Division activities subsidize the residential rates for all residents. This situation has not
changed and is apparently the rationale for the historic Ordinanceprohibition against
private waste collectors. The City Council has historically created a commercial and
residential rate structure which promoted this cross user subsidy.
Currently each of the smallest commercial container users provide a subsidy of
approximately $ 120/year, while the 2 to 8 cubic yard container users pay a subsidy on
average of approximately $500/year. These numbers are approximate and are based upon
an average commercial customer. (This does not include the rolloff style containers.)
A $40 per month surcharge totals annually approximately $542,000 from the commercial
activities which helps to cover otherwise unfunded residential program expenses.
As the City Council has discussed, the Solid Waste operations are efficient and
economically provide the collection and increasing recycling services demanded by the
citizens, both residential and commercial. There has historically been a balance between
the various rate classes which has allowed the residential rates to be maintained at a
reduced level. Any migration of commercial customers to private waste services will
severely undermine the affordable residential rate structure.
Requested Action
The discussion on July 9, to staff, focused only on larger rolloff services which were to
remain in open competition at this time. The City Council is requested to clarify its
position and give direction to the staff.
OA_Dsta\SdoliWaste\Ratestructure Anaivsis\C'ontmercial
Market com etiticencss.doc
FA YETTEVILLE
THE CITY OF FAYETTEV/LLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Mayor and City Council
From: Gary Dumas
Date: July 16, 2002
Subject: Ordinance Establishing Residential Solid Waste and Recycling Services Rate
Structure
Background
During the Agenda Session of July 9, the City Council discussed several issues relating to
the Residential Solid Waste and Recycling Services Rate Structure. Based upon that
discussion the following rate structure is proposed. The background information supplied
at that meeting has not been recopied, but is available if any Council person would like an
additional copy.
Discussion
Subsequent to the meeting some Council members have requested an historic summary of
the volume-based pink bag program.
August 4, 1998-Council authorized with Ordinance 4111 , implementation of the pink bag
program beginning in calendar year 2000 for 104-33 gallon bags per household with the
option of purchasing additional bags and for subsequent years 78-33 gallon bags per
household, again with the option of purchasing additional bags.
September 5, 2000-Council authorized with Ordinance 4270 90-33 gallon bags for 2001 .
The initial plan would have permitted approximately 66 gallons per week in 2000 and
then reduced the volume to approximately 49.5 gallons per week in 2001 . The plan was
modified by Ordinance 4270 to approximately 57 gallon per week rather than the 49.5
gallons.
The proposed Ordinance will allow a much more responsive volume based program in
that each household will have a cost based decision to make concerning their waste
stream. That cost based decision will allow a cost reduction to as low as $8. 19 for a 32
gallon cart to $17.74 for the 96 gallon cart.
The proposed rates include the $0.20 for the 4 neighborhood based cleanups that can be
provided each in each Ward. The proposed rates are as follows:
M
Approve Ordinance establishing a rate structure as follows:
Cart
Container Graduated Capitalization Monthly
Volume Fixed Fee Volume Fee Included in Rate
Base Rate
32 $5 .76 $2.06 $0.37 $8. 19
64 $5.76 $6.24 $0.49 $ 12.49
96 $5 .76 $ 11 .43 $0.55 $17.74
Apartment complexes recycling - cost per unit $ 12.49
Apartment complexes not recycling -cost per unit $17.74
Including the following:
1 . On the service day, an additional 32 gallon bag may be placed in the top of an
open cart. The fee for this additional bag is $2.50. This excess bag would be
billed to the customer at the next billing cycle.
2. Extra service may be requested by appointment. Trash must be in the cart, an
extra bag is permitted to be placed in the top of an open cart. The additional . .
service call fee is $6.00 plus the cost of disposal based on cart size. This special
service would be billed to the customer at the next billing cycle.
3. Bags outside of the cart will not be accommodated.
4. Registered rental property will be permitted 10 days of service immediately
following the vacation of the rental property for 1/3 the normal monthly rate for
the cart at the residence. The landlord will be responsible to contact Solid Waste
and Recycling if the cart is missing when they arrive for their cleanup activities.
The landlord will be responsible for the cart during these 10 days and will be
required to contact Solid Waste and Recycling for cart pickup.
5 . Up to four community cleanups per year can be provided in each Council Ward.
These cleanups would take all normal residential items for no disposal fee. These
cleanups would need to be coordinated by neighborhood associations and
sponsored by both Ward Alderpersons.
6. One bulky waste pickup on a reservation basis will be provided rather that the two
currently available, mobile home parks and apartment complexes of 4 or more
units will not participate. The program will be evaluated in the 2004 budget for
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effectiveness. This program change would be implemented immediately.
7. One community-wide bulky waste roundup will be provided during Earth Week
activities. Customers can bring normal residential items to the Solid Waste
facility for disposal at no fee.
Recommendation
Approve Ordinance implementing above fee structure and program parameters.
FA YETTEVILLE
THE CITY OF FA YETTEVILLE, ARK4NSAS
DEPARTMENTAL CORRESPONDENCE
To: Mayor and City Council
From: Gary Dumas
Date: Tuesday, January 22, 2002
Subject: Large Commercial and Industrial Accounts
Rolloff Containers and Compactors
Waste Management of Northwest
This past Thursday, January 17, representatives of Waste Management of Northwest
Arkansas, Kevin Gardner and John Sampier, contacted the Mayor regarding the services
to large commercial and industrial customers that the Solid Waste Division is now
offering.
They had with them the proposed service costs that we had provided to a potential
customer Ayrshire Electronics. Ayrshire is currently a customer of Waste Management.
Waste Management had evaluated our proposal, based upon their knowledge of the
Ayrshire account, and concluded that the Solid Waste revenue less expenses was
approximately $30.00 per service call. Their estimate is fairly accurate. It appeared that
the opinion of Waste Management was that the City should not provide this service.
Based upon the $30.00 estimate, Waste Management verbally offered to pay the City a fee
of $30.00 for each service call they made, replacing our lost revenue. Some discussion
continued concerning the revenue that might be collected from Waste Management with
this "franchise fee."
In addition, on January 17, the City Attorney received a letter from Rolloff Services
attorney, requesting clarification of the current ordinances regulating solid waste disposal
services within the City of Fayetteville. That response was provided today.
The Mayor requested that staff review the verbal proposal from Waste Management in
relation to potential revenue for the City and for costs to the public and individual
businesses.
Staff happens to have a current Waste Management invoice (7-1 -01) to Ayrshire
Electronics for services provided during the month of June 2001 . Based upon this invoice
some assumptions can be made as to Waste Management's cost of service vs. the City's
cost of service to Ayrshire, along with some interpolations regarding impacts to general
General Services Department Telephone: 479-575-8330
113 West Mountain Street Fax: 479-575-8257
Fayetteville, Arkansas 72703 Email : gdumas@ci .fayetteville. ar.us ci .fayetteville. ar.us
customers and community-wide impacts.
Generally, invoices such as the one attached are not available. Waste Management may
have varying rate structures, but that is unknown. In addition, Ayrshire is provided with
two compactors and containers, one for trash and normal business waste and one for
cardboard recycling. The invoice does not account for this cardboard recycling compactor
and container. However, the fee proposal from the Solid Waste Division provides for this
continued service. The service call charges are based upon the information that Waste
Management provided to the Mayor.
The attached spreadsheet summarizes clearly the impacts of the City removing its self
from the marketplace. There are several reasons for the City to be involved with
providing this service:
one, is to provide a competitive option in the marketplace;
second, is to take maximum advantage of the resources and investment that the
City has made in the transfer station and staff within the Solid Waste Division; and
third, is to begin to account for the trash volume being disposed of within the City
and to start an effective program of commercial and industrial recycling.
As stated above, this analysis is based upon assumptions from very limited data about the
variableness of Waste Management's fee structure and the level of their market
penetration. Even assuming that the assumptions are in error by a margin of 50%, the
annual cost to the community above the current Solid Waste fee structure is $384,048 or
at an annual additional cost per customer of between $3,840 and $7,680.
The staff will continue to search for more data to validate or disprove the above
assumptions. The staff will keep the City Council appraised of any additional information
as it becomes available. At this time, the Mayor has indicated that the City's position will
continue to be one of providing competition in the market place.
This will probably not be the end of this discussion with either Waste Management or
Rolloff Services. As either of these discussions progress the staff will keep the Council
informed.
Cost Analysis of Public vs. Private Sector Large Commercial Rolloff Service
Waste Management
Basis: Invoice to Ayrshire 7-1 -01
Base Service $427.00 per month $854.00
Lease Rate $360.00 per container $360.00
Fuel Charge $6.78 per service $13.56
Total $793.78 Li $1227c55
The above represents 2 service call and minimum base (lease) charge for 1 -40cy compactor and
no charge for cardboard compactor container. Lease rate may be on 10 year amortization at 6-
8% interest, if so, cardboard container is buried in lease rate.
City Solid Waste
Basis: Our Offer to Provide Services
Base Service $163.50 per month $163.50
Cardboard $157.54 per month $157.54
Lease Rate $378.67 per container $378.67
Fuel charge $0.00 per container $0.00
Additional Service $163.50 per month $163.50
Total $853.21 R $863221'
The above represents 2 service calls to 1 -40 cy compactor container. Lease rate Is at 5 year
amortization at 8.4% interest. The cardboard is captured in 6cy container serviced 3 times per
week. From information provided by Waste Management, the 2nd service call may not have
been required, but to provide an equal comparison it has been included.
Difference for Ayrshire
$364.35 in total additional costs per month
$263.50 in total additional cost per service call per month
-$18.67 in total Savin for leased containers r month
PI
Interpolation to Community
Waste Management serves approximately 100 accounts with Class 1 and
Class 4 Service
Assume these accounts are served 2.5 times per month
100 accounts
2.5 service/mo.
WM V$427:00` per service
City $163'501
WM Total annual community costs $1 ,281 ,000 does not include any lease
City Total annual community costs $490,500 does not include any lease
Difference x$7.90;500'
WM Total annual community costs $1 ,713,000 does include lease
City Total annual community costs $944,904 does include lease
Difference x0$7.,58088
Potential Franchise Fee
Fee $30.00
$90,000.00
Any Franchise Fee will most lilely be passed on to customers as an identified City fee and will
increase the costs to business
