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HomeMy WebLinkAboutORDINANCE 6138113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6138 File Number: 2018-0707 RECYCLING AND TRASH COLLECTION RATE AMENDMENTS: AN ORDINANCE TO AMEND § 50.40 RATES FOR SERVICES OF THE FAYETTEVILLE CITY CODE TO ALIGN THE CITY'S RECYCLING AND TRASH COLLECTION RATES WITH THE RECENT RATE STUDY WHEREAS, the Recycling and Trash Collection Rate Study completed by MSW Consultants made several recommendations based on a cost of service analysis and the goals of the City's 2017 Solid Waste Reduction, Diversion, and Recycling Master Plan which are reflected in the staff -recommended amendments to the rates for recycling and trash collection services below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby repeals § 50.40 Rates for Services and enacts a new § 50.40 as follows: 50.40 - Rates For Services (A) Fee Increases. The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. (B) Residential Single-Family/Duplex Service. Recycling and Trash shall be collected from residential single-family/duplex customers one time each week for the following rates: Recycling and Trash User Fee Schedule Container Volume Monthly Rate Page 1 Printed on 114119 Ordinance: 6138 File Number.' 2018-0707 32 $10.16 64 $15.52 96 $22.03 (1) There shall be no charge for the collection of residential yard waste. (2) Residential single-family/duplex service customers shall receive bulk collection at no charge one time per year. (3) If a residential single-family/duplex customer wishes to exchange to a larger residential garbage cart size, the customer shall be assessed a $25.00 trip fee. No fee shall be assessed for customers wishing to exchange to a smaller cart. (4) The charge for an extra bag or an over -full cart shall be $6.72. (C) Residential Multi family Service. Trash shall be collected from residential multi -family customers one time each week at a rate of $9.72 per dwelling unit per month unless the owner of the multi- family complex requests greater volume/frequency of service than the minimum required service as determined by the Recycling and Trash Collection Manager. When requests for greater volume/frequency of service by an owner are made, rates shall be determined by the prevailing commercial service rate divided by the number of dwelling units. Multi -family trash service shall include recycling, subject to availability as determined by the Recycling and Trash Collections Director. (D) Commercial Service. Trash shall be collected from commercial customers as shown below. (1) The monthly commercial rate shall be: Commercial User Fee Schedule Commercial Container Size Rate Per Pickup 95 Gallon Cart $19.83 2 cubic yards $47.50 4 cubic yards $88.45 6 cubic yards $115.00 8 cubic yards $144.00 (2) Commercial 95 -gallon carts shall be picked up once per week, Monday through Thursday. Larger commercial containers shall be serviced a minimum of once per week and a maximum of six (6) times per week, Monday through Saturday, except authorized holidays for city employees and unavoidable inclement weather. (3) The rate for providing extra collection of any 95 -gallon cart shall be twice the monthly collection rate based on the number of collections per week as established by §50.40(B)(1). Page 2 Printed on 114119 Ordinance: 6138 File Number: 2018-0707 The rate for providing extra collection of any commercial front load dumpster shall be one-half the monthly per cubic yard rate for each dumpster size. (4) The rate for providing cardboard and paper recycling service shall be 25% of the equivalent commercial container trash service, except that the Recycling and Trash Collection Division may waive that fee for all 95 -gallon cart customers. (5) Container rental is a flat fee per month. Container Rental/Dumpster Lease Fee Schedule Container Size (Cubic Yards) Monthly Rate 2 yd $13.53 4 yd $15.47 6 yd $18.00 8 yd $21.25 (E) Use of Composting Facility. Businesses, including commercial landscapers and tree trimmers, and nonresidents that bring brush to the city's composting facility for disposal will be charged as follows: Composting User Fee Schedule Size Rate Compact pickup trucks $5.25 Full size pickup trucks $8.40 Trailers up to 14 feet long $10.50 Trailers greater than 14 feet long $15.75 PASSED and APPROVED on 1/3/2019 Approved: Attest: Sondra E. Smith, Cr !� L* Gni Y :FAYE TEVILLL:.,. l�-� •�'YI.; fir. �yC'] �•. �; r f f i if IIIUy'r `tiy Page 3 Printed on 114119 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 r' (479) 575-8323 r Text File File Number: 2018-0707 Agenda Date: 1/3/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: B. 1 RECYCLING AND TRASH COLLECTION RATE AMENDMENTS: AN ORDINANCE TO AMEND § 50.40 RATES FOR SERVICES OF THE FAYETTEVILLE CITY CODE TO ALIGN THE CITY'S RECYCLING AND TRASH COLLECTION RATES WITH THE RECENT RATE STUDY WHEREAS, the Recycling and Trash Collection Rate Study completed by MSW Consultants made several recommendations based on a cost of service analysis and the goals of the City's 2017 Solid Waste Reduction; Diversion, and Recycling Master Plan which are reflected in the staff -recommended amendments to the rates for recycling and trash collection services below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby repeals § 50.40 Rates for Services and enacts a new § 50.40 as follows: 50.40 - Rates For Services (A) Fee Increases. The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. (B) Residential Single-Family/Duplex Service. Recycling and Trash shall be collected from residential single-family/duplex customers one time each week for the following rates: Recycling and Trash User Fee Schedule Container Volume Monthly Rate 32 $10.16 64 $15.52 96 $22.03 (1) There shall be no charge for the collection of residential yard waste. (2) Residential single-family/duplex service customers shall receive bulk collection at no charge one Clty of Fayetteville, Arkansas Page 1 Printed on 11W2019 File Number.' 2018-0707 time per year. (3) If a residential single-family/duplex customer wishes to exchange to a larger residential garbage cart size, the customer shall be assessed a $25.00 trip fee. No fee shall be assessed for customers wishing to exchange to a smaller cart. (4) The charge for an extra bag or an over -full cart shall be $6.72. (C) Residential Multi family Service. Trash shall be collected from residential multi -family customers one time each week at a rate of $9.72 per dwelling unit per month unless the owner of the multi -family complex requests greater volume/frequency of service than the minimum required service as determined by the Recycling and Trash Collection Manager. When requests for greater volume/frequency of service by an owner are made, rates shall be determined by the prevailing commercial service rate divided by the number of dwelling units. Multi -family trash service shall include recycling, subject to availability as determined by the Recycling and Trash Collections Director. (D) Commercial Service. Trash shall be collected from commercial customers as shown below. (1) The monthly commercial rate shall be: Commercial User Fee Schedule Commercial Container Size Rate Per Pickup 95 Gallon Cart $19.83 2 cubic yards $47.50 4 cubic yards $88.45 6 cubic yards $115.00 8 cubic yards $144.00 (2) Commercial 95 -gallon carts shall be picked up once per week, Monday through Thursday. Larger commercial containers shall be serviced a minimum of once per week and a maximum of six (6) times per week, Monday through Saturday, except authorized holidays for city employees and unavoidable inclement weather. (3) The rate for providing extra collection of any 95 -gallon cart shall be twice the monthly collection rate based on the number of collections per week as established by §50.40(B)(1). The rate for providing extra collection of any commercial front load dumpster shall be one-half the monthly per cubic yard rate for each dumpster size. (4) The rate for providing cardboard and paper recycling service shall be 25% of the equivalent commercial container trash service, except that the Recycling and Trash Collection Division may waive that fee for all 95 -gallon cart customers. (5) Container rental is a flat fee per month. Container Rental/Dumpster Lease Fee Schedule Container Size (Cubic Yards) Monthly Rate 2 yd $13.53 4 yd $15.47 6 yd $18.00 City of Fayetteville, Arkansas Page 2 Printed on 1/4/2019 File Number.' 2018-0707 8 yd $21.25 (E) Use of Composting Facility. Businesses, including commercial landscapers and tree trimmers, and nonresidents that bring brush to the city's composting facility for disposal will be charged as follows: Composting User Fee Schedule Size Rate Compact pickup trucks $5.25 Full size pickup trucks $8.40 Trailers up to 14 feet long $10.50 Trailers greater than 14 feet long $15.75 City of Fayetteville, Arkansas Page 3 Printed on 11412019 Leif Olson Submitted By City of Fayetteville Staff Review Form 2018-0707 Legistar File ID 12/18/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 11/29/2018 SUSTAINABILITY/RESILIENCE (631) Submitted Date Division / Department Action Recommendation: Staff recommends approval of an ordinance adopting the updated recycling and trash collections cost -of -service 1 rates proposed in the Recyling and Trash Collection Rate Study conducted by MSW Consultants. I Budget Impact: NA NA Account Number NA Project Number Budgeted Item? NA Current Budget Funds Obligated Current Balance Does item have a cost? NA Item Cost Budget Adjustment Attached? NA Budget Adjustment Purchase Order Number: Change Order Number: Original Contract Number: Comments: Remaining Budget Fund NA Project Title Previous Ordinance or Resolution # Approval Date: V20180321 CITY OF FAYETTEVILLE ARKANSAS MEETING OF DECEMBER 18, 2018 TO: Mayor and City Council THRU: Don Marr, Chief of Staff CITY COUNCIL MEMO FROM: Peter Nierengarten, Sustainability Department Director DATE: November 29, 2018 SUBJECT: Adoption of updated Recycling and Trash Collections Division's cost -of -service rates for commercial and residential customers. RECOMMENDATION: Staff recommends approval of an ordinance adopting the updated recycling and trash collections cost -of -service rates proposed in the Recycling and Trash Collection Rate Study conducted by MSW Consultants. BACKGROUND: In 2018 the City contracted with MSW Consultants to conduct a Recycling and Trash Collection Rate study to comprehensively evaluate the solid waste systems full cost of service and to develop a five-year financial plan with recycling and trash disposal rate recommendations. MSW Consultants provided a detailed analysis of the existing waste collection services, facilities and rates for each major service type. The consultant also provided a cost of service analysis and projected the rates needed to fund the various services. This included identifying the costs associated with new or expanding commercial, organics, commercial glass and multi -family recycling services - all supported in the 2017 Solid Waste Reduction, Diversion and Recycling Master Plan. And lastly, final collection and disposal rate recommendations are provided for all facilities and collection services. Implementation of the Recycling and Trash Collections Rate Study will enable the Recycling and Trash Collections Division to increase waste diversion by implementing the following service enhancements: All-inclusive trash and recycling for multi -family and small commercial complexes (previously these customers had to pay extra for recycling services) • Expanding curbside recycling to apartment complexes with 24 units or less • Discounted commercial cardboard and paper recycling • Transition commercial food waste composting pilot to full service • Transition commercial glass recycling pilot to full service • Increase transfer station tip fees to encourage diversion (out -of -City transfer station rate includes a premium for us of City resources) Mailing Address: 113 W. Mountain Street www,fayetteville-ar.gov Fayetteville, AR 72701 DISCUSSION: Ordinance amendments needed to implement the Recycling and Trash Collections Rate Study are located in Chapter 50.40 in the Public Works section of the City Code. Necessary amendments to codify the Study include: • Relocating language on Consumer Price Index (CPI) index increase so that it applies to all customer classes and rates — previously the CPI had only been applied to residential rates, Adjusting Residential Single -Family Trash and Recycling Rates to align with the Rate Study recommendations, • Adjusting Residential extra trip and extra bag charges to align with the Rate Study recommendations, Adjusting the codified multi -family rate to match the current rate, • Adding language that allows for all-inclusive trash and recycling for multi -family and small commercial complexes, • Adjusting Commercial Trash rate to align with the Rate Study recommendations, C Adding language to discount Commercial Recycling Rates, and • Adjusting Commercial Dumpster Lease Rates to align with the Rate Study recommendations. BUDGET/STAFF IMPACT: The overall rate impact of the recommended rates is a 9.1 % increase over current rates. Attachments: Chapter 50.40 Code Amendments Recycling and Trash Collection Rate Study from MSW Consultants ARTICLE III - COLLECTION CHARGES; BILLING 50.40 - Rates For Services (A) - -Fee Increases. The F2ec clip and Trash User Fee shall be ad usted annual) based upon the Consumer Price Index CPE as published by the U.S, Department of Labor. unless s ecificail waived by City Council resolution LBj_Residential Single-FamilylDuplex Service. Recyclinq_and Trash Garbage- zP4-4fash_shall be collected from residential single-family/duplex customers one time each week for the following rates- Recyclina and Trash Garbage)rra -h-User Fee Schedule Container Monthly I Volume Rate 32 1 W. 7-5110.16 64 $4-3-3-5115.52 I ---.i 96 X18 IC 22.03 (1) _—There shall be no charge for the collection of residential yard waste. (2) _—Residential sing le-familylduplex service customers shall receive bulk collection at no charge one time per year. (3) _7 --If a residential single-family/duplex customer wishes to exchange to a larger residential garbage cart size, the customer shall be assessed a $20-W 25.0!0sa+1 exo}�ar�ge fee. No fee shall be assessed for customers wishing to exchange to a smaller cart. (4) _—Tbe-Gar-bageTash- 4ser-Faeshal[4x-adjusted-annualty--based--apon--floe--G©nsam- am -Arm Index--(-GPl} 35 �?ubli5hed-by-thd � arfr�ie#t eF L boy; u+Mess specirically-waiued by -city Ceunsil resGkWe;, The charae for an extra bag or an over -full cart „shall be $6.72. (B) Residential Multi -family Service. Trash shall be collected from residential multi -family customers one time each week at a rate of $G: -2,&-j%.72 per dwelling unit per month unless the owner of the multi -family complex requests greater volume/frequency of service than the minimum required service as determined by the Recycling and Trash Collection Manager. Ad4Won;slty; wherHecyG4Rg sePice-is previed-to a -remittal rrltiariil vviwse cust�rner- afl additar►al-rete��� ;v 9� per unit peF OFA shali-e P)ly When requests for greater volume/frequency of service by an owner are made, rates shall be determined by the prevailing commercial service rate divided by the number of dwelling units. Multi -family trash service shall include rec clip sub'ect to availability as determined bv the Recurlinn and Trash Collections Director. (C) _—Commercial Service. Trash shall be collected from commercial customers as shown below. (1) The monthly commercial rate shall be: Commercial User Fee Schedule Commercial Container Rate Per Size Pickup 95 Gallon Cart 519.83 2 cubic yards 47'.50 4 cubic yards J 88.45 6 cubic yards I 8 cubic yards 115.0 (2) _—Commercial 95 -gallon carts-have-a-wammum-cam four (4�ps-peF-week- shall he picked up once per week, Monday through Thursday. Larger commercial containers shall be serviced a minimum of once per week and a maximum of six (6) times per week, Monday through Saturday, except authorized holidays for city employees and unavoidable inclement weather. (3) _—The rate for providing extra collection of any 95 -gallon cart shall be twice the monthly collection rate based on the number of collections per week as established by §50.40(6)(1). The rate for providing extra collection of any commercial leads]]-type-sentaieef front load dum sten shall be §,ter size. peF sab+c yam (4) --The rate for providing cardboard and paper recycling service shall be- 25% of the equivalent commercial container trash seryiceS849 per Gubie-yafd. (5) _---Container rental is a flat fee per month. Container Rental/Dumpster Lease Fee Schedule Container Size Monthly Rate (Cubic Yards) T 2 yd $4-2m-69. 13.53 4 yd $.14,:T3$15.47 6 yd V 7-1 •$18.00 8 yd _k- $20.24521 25 `I J6) Are ideMial-rn�it+-�+ily �o1�pleYEfl##IGe s#�all pe]+ eH c�ddataar�a� �n ago per m9PA 4G4ts4eGy-.N q and--tfr3" h Go! ec4i4"-aB4f4AvGre•ar'F-iq4#--unit-wbe;i the reside-Rtmal multi famly Gornpiex i FeGepvi g feGyG4 ng-sePAOL&z _(B)--Leada# TiTe-••Gerota -Seise:--T#e-FeeetNy-ret,—fof-ene-piekup-pef-week- o -any-eemmerGial esta�lishrnent-us+Fu k�ada4l-type sdatai+aefs oFec�lleGtin�rnf garbage s#aall-he y 38 pef-- bie yafd s�ilected- �l 1 �aa�rfaereial r yc�rpy. -L ni(Wd Gmmereial resysliG94"f#ered per4#e n- b e- Gw. —fie PeP t� ^mak Size RatePeFNG 4- d fdbeafd 2:1-1. $49:1.4 6 yd eaFdbeafd 28.-•6 66&.52 9 yd Gar�jllGard 36:4} $32.76 4 yd pe 22.-11 4S ga4-reGysle-6+fF i f WOO (F) Use of Composting Facifity. (1) _-Businesses, including commercial landscapers and tree trimmers, and nonresidents that bring brush to the city's composting facility for disposal will be charged as follows: Composting User Fee Schedule Size Rate Compact pickup trucks Lk.25 k $&00 Full size pickup trucks 8.40 -- - - f Trailers up to 14 feet long j10.5x] I Trailers greater than 14 feet long $15.751 I (Code 1965, §§10-28, 10-29, 10-29.1; Ord. No. 1194, 4-6-59; Ord. No. 1443, 4-26-65; Ord. No. 2587,12-18-79; Ord. No. 2751, 8-18-81; Ord. No. 2767, 10-20-81; Ord. No. 2855, 9-21-82; Ord. No. 2886, 1-18-83; Ord. No, 3626, 8-4-92; Ord. No. 3755, §§3, 4, 12-21-93; Ord. No. 3841, §1, 11-16-94; Ord. No. 3842, §3, 11-16-94; Ord. No. 3993, §§1-5, 9-17-96; Ord. No. 4111, §5, 8-4-98: Ord. No. 4349, 11-6-01; Ord. No. 4382, 3- 19-02; Ord. No. 4415, §5, 9-17-02; Code 1991, §50.40, Ord. No. 4457 §50.40, 01-21- 03; Ord. No. 4765, 09-20-05; Ord. No. 5278, 10-05-09; Ord. No. 5299, 12-15-09; Ord. No. 5470, 12-20-11; Ord. No. 5565, 02-19-13; Ord. No. 5691, 6-03-14) •,r-� �Y. tit.v. � ,f L Prepared for CITY OF FAYETTEVILLE ARKANSAS w Recycling & Trash Collection Rate Study November 26, 2018 Final Report CONSULTFINTS 11875 High Tech Avenue Suite 150, Orlando, FL 32817 ~^^����TABLETABLE CONTENTS 1^ INTRODUCTION ---^-^^---------^-------------'--------'..-----.'....'l'l 1.1 Background ------------------------------------------.1-2 1.3 Report ---------------------------'---------1'1 2.1 Introduction .............................................................................................................................. 2-1 22 Solid Waste Fucditica-'-..-------.___.,'.~.,__....._.......... 2-2 22.1 Transfer Station ................................................................................................................... 2- 222 Compost Facility .—'--.'-.. ----.2-2 22.3 Recycling Center ........................... ...... .......... .................... ... .~.-.-2'2 22.4 CitizenRecycling Drop -Offs ............................................................................................ 2'3 22.5 ....................................... 2-3 2.3 Collection 3crvicoo----.............. ........... --.............................. ... -.............................. 2-4 2.3.1 Residential Refuse ......................... °,.^~—'~.................................................. ^=_..... 2-4 2.32 Residential -----------------------------------.2-5 2.3.3 Residential Yard Waste .............................................. .......................... ............................ 2-S 23/4 Residential Bulky ................................................................................................................. 2-6 23.5 Dnvidcu6u .............. ...................... ....... .................................. ......................... 2-6 2.3.6 Commercial and Multi -Family Refuse Container Collection ...................................... 2-7 2.3.7 Commercial and Mohi-Fxonily Rccvc6oc--,.... ..^...... =—........ ............................. 2-8 2.3.8 ------------------------------------'--'-2-9 2.3.0 Commercial Rate ---------------------'_-------_.2-0 3.1 Iutnodortino--------------------,-..-----------.---.----.. 3-1 32 Rate Study Development .............. _................................................. ................................. 2-1 3.21 Financial Data ............................ ~^.^.... ............ .............. ;�... ___ ........ ........................ 3'1 32.2 Capital Plan .......................... ........................................ ......... ..................... 3'9 3.2.3 Projected Cost o[ Program Expansions .......................................................................... 3-4 3.3 Coot-of-Sczvicez\uulynis........ "............. .................... —...... .,~-...... ..................... 3-4 3.3.1 Recycling and Trash Division Functions ...... ........... .'~—.-._.~..`...... .... .... 3-4 3.3.2 System Net Rcrcuoc -----------------._'_..._-.---..3-S 3.3.3 Allocations --_-.--~~.-_-~..................................... ..................................... 3-S 4^ CONCLUSIONS AND RE ................................................ 4-1 41 Introduction .... `....... ....................... ~...................... ............................ ___ ....... ...................... 4-1 On- "//ivore. le / TABLE OF CONTENTS 4.2.1 Residential Collection Services......................................................................................... 4-2 4.2.2 Multi -Family Collection Services ............. .............................................. .._........................ 4-2 4.2.3 Commercial Container Collection Services, ... . ......:...........:.::...:...:...::............i: :........ 4-2 4.2.4 Drop Box Collection Services...........................................................................................4-4 4.2.5 Facility Fees............................................................................... 4-5 4.3 Projected Financial Performance......................................................... :..:............ ..................... 4-5 4.4 Other Recommendations........................................................................................................ 4-7 4.5 Conclusions...............................................................................................................................4-7 LIST OF APPENDICES Appendix A — City Council Presentation CONSULTFaNTS ii Cit of Fayetteville TABLE OF CONTENTS List of Figures Figure 2-1 Vehicles Waiting to Weigh'in at Scales................................................................................... 2-1 Figure 2-2 Truck Backing to Empty in Transfer Station........................................................................ 2-1 Figure 2-3 Windrow Turner, Windrows Compost Processing Pad ...... ...........:.::.:..................:............. 2-2 Figure 2-4 Private Haulers Unloading at Compost Facility...................:.::..................::..........:.:........... 2-2 Figure 2-5 Commercial Cardboard Truck Offloading at the Recycling Center.—, ....... ...... 2-3 Figure 2-6 Baled Materials Ready for Marketing...................................................................................... 2-3 Figure 2-7 Attendant Assisting Citizen at North Street Drop -Off ....................................................... 2-3 Figure 2-8 Recycling Drop-off Adjacent to Division Headquarters:..................................................... 2-3 Figure 2-9 Refuse Cart and Recycling Bin Setout.................................................................................... 2-4 Figure 2-10 Automated Trash Collection:i....:,....:::::......................... :... ................. .:..... :.......................... 2-4 Figure 2-11 Driver Out of Cab Depositing Extra Bags into Cart to Tip ........... .:..:..:...... ,................... 2-5 Figure 2-12 Driver Returning to Truck After Returning "Exempt" Bin to Citizen's Door .............. 2-5 Figure 2-13 Driver Curbsorting Residential Recycling.............................,.....,..,.,...............:................... 2-5 Figure 2-14 Residential Recycling Set Out Incorrectly in One Bin.......................................................2-5 Figure 2-15 Yard Waste Collection........................................................................................_................. 2-6 Figure 2-16 Bulky Brush Collection........................................................................................................... 2-6 Figure 2-17 Commercial Refuse Service.............................................,.............._.................................... 2-8 Figure 2-18 Refuse Service at a Multi -Family Complex.......................................................................... 2-8 Figure 3-1 Historical Operating Results......... ...... ... .................... I.... ...... . ................................... ......... ; .... 3-2 Figure 3-2 Vehicle/Equipment Addition and Replacement Schedule......... ........................................ 3-4 Figure 3-3 Revenue Sufficiency Under Existing Rates ................................. ......................... :....... ..,........... 3-8 Figure 4-1 Projected Operating Results.......... ......................... ....................................... 4-6 Figure 4-2 Projected Operating Reserves.......,..:..:.::.::.::.. .......:: ...... :......................................................... 4-7 List of Tables Table 2-1 Transfer Station Rates................................................................................. ...................... ...:2-1 Table 2-2 Compost Facility Rates Per Load Size... .............. 2-2 Table 2-3 2017 Tonnage by Facility .................................. I ..................... ..... ........ ............. ...... 2-4 Table 2-4 Residential Refuse Customer and Rate Summary ...... ..... .......... ... ....:..,...... .............................. 2-7 Table 2-5 Residential Quantities Collected ............... ........................... :.:...:........... ....................... ........ .... 2-7 Table 2-6 Commercial Refuse Customer Summary..........................::...............•.................................... 2-8 Table 2-7 Commercial OCC Recycling Customer Summary ....... ..:.:............... :................................... ....2-8 Table 2-8 Commercial Collection Rate Matrix .................. ............... ...... ....._.._.......... 2-9 Table2-9 Drop Box Rates.................................................................................................. ........ ............ — ..... . 2-9 Table 2-10 Summary of Daily Collection Routes ...... .............................................. ,................. .............. 2-10 Table 3-1 Estimated Basis of Operating Reserve Starting Balance, FY19........................................... 3-2 Table 3-2 Billing Determinants: Tons Processed..................................................................................... 3-3 Table 3-3 CIP Summary.................................................._. ............................................................. 3-3 Cin oflaperrcvillc Iii C©NSUL-MNTS TABLE OF CONTENTS Table 3-4 Incremental Resources for Program Expansion ......................... ,............ ,....... ....................... . 3-4 Table 3-5 Recycling and Trash Division Functions................................................................................. 3-5 Table 3-6 Full Cost of Service for Solid Waste Fund.............................................................................. 3-5 Table 3-7 Allocation Methods 3-6 Table 3-8 Recycling and Trash Rate Revenue Requirement ....................... .:;....:,.....::.......... :..:...... :...... 3-7 Table 3-9 System Surplus (Deficit) ............ .................................. I—,.... .......................... ... -•- ................ .. 3-7 Table 4-1 Residential Rate Recommendation........................................................................................... 4-2 Table 4-2 Multi -Family Monthly Rate Recommendation .............................. ................,....................... 4-2 Table 4-3 Current Commercial ($/Month) Trash Rates.........................................................................4-3 Table 4-4 Full Cost Commercial ($/Month) Trash Rates.............................................................. ........ .... 4-3 Table 4-5 Recommended Commercial (Monthly) Trash Rates 4-3 Table 4-6 Commercial Organics, Glass and 18 -Gallon Bin Monthly Recycling Rates ...................... 4-4 Table 4-7 Drop Box Trash and Recycling Rates .............. ::.:.......... :.......... :....... :.:.......... I.— .... .,.,........... I... 4-5 Table 4-8 Transfer Station Scale Rates... ............. .............. .•.••.•• ....................... ..•..........,.. ........ 4-5 Table 4-9 Compost Facility Rates(per Load 4-5 Table 4-10 Overall Rate Impact by Service Sector..........................,.....,................................................. 4-8 FZ�= C0N!5UtTF1NTS iv City of Fayeacville 1. INTRODUCTION 1.1 BACKGROUND The City of Fayetteville, Arkansas operates an integrated solid waste management program servicing its citizens and businesses as well as a few accounts in the surrounding area. In addition to providing collection of refuse, recyclables and yard wastes from residential and commercial customers, the City also owns and operates several waste management facilities, including a transfer station, recycling center, compost facility and two recycling convenience centers. The City is experiencing growth in accounts and for the second time in recent years, has completed the regulatory process to increase the permitted tonnage Emit at its transfer station. The City's Recycling and Trash Division completed a Solid Waste Reduction, Diversion and Recycling Master Plan that was approved by the City Council in early 2017. The Plan highlighted several programs to divert more materials from landfilling and the Division has been moving toward implementation of these programs. In order to adequately fund implementation of these programs, the City needed to know the impact on current operational costs. The City funds its solid waste programs through facility tip fees and through user fees charged to the residents and businesses directly receiving services. Although the City's rate structure allows it to appropriately and comprehensively charge users for the services received, the City has not conducted a formal cost -of -service and rate study for over twenty years. In anticipation of upcoming enhancements to the system as a result of Master Plan implementation, and because of the elapsed time since the prior cost - of -service study, the City retained MSW Consultants to comprehensively evaluate the solid waste system full cost of service, and to develop a five-year financial plan and rate recommendation. 1.2 OBJECTIVES This report contains the results of the cost -of -service and rate study. The objectives of the study included the following: ♦ Review collection and disposal operations and other ancillary programs provided by the Recycling and Trash Division, including staffing levels and administration, to obtain a detailed understanding of the operational requirements of the system. ♦ Compile historical and projected revenues, expenses, and capital purchases from budget documents and historical reports for the Recycling and Trash Division, including residential and commercial collections and the disposal and recovery operations at the transfer station, recycling center and compost facility. ♦ With input from City staff, integrate the projected costs of new programs associated with implementing the Master Plan. ♦ Establish a test -year revenue requirement as well as projected full costs Fora five-year planning period to identify the rate revenues that will be needed to cover direct operating expenses, capital purchases, and targeted operating reserve levels and assure the financial health of the system. ♦ Recommend adjustments to the current rate structure as well as a five-year rate path to cover revenue requirements, provide the City's residents and businesses with appropriate incentives to utilize the recycling program, maximize rate equality, and minimize shocks to existing customers. 1.3 REPORT ORGANIZATION The remainder of the report provides detail and findings and has been organized into the following sections: City of rnyetteville i -1 CCI NSU UrFlN-rS 1. INTRODUCTION • Section 2 - Waste Management System Description: This section reviews the City's collection services to residential and commercial customers, the City's solid waste facilities, provides rates and accounts serviced for each major service type, and findings from the route observations. • Section 3 - Cost of Service Analysis: This section summarizes the City's projected financial performance and identifies the primary inputs to the financial analysis undertaken to validate service rates. This section also identifies the costs associated with the new or expanding commercial organics, commercial glass and multi -family recycling services. • Section 4 - Conclusions and Recommendations: The final rate recommendation is provided in this section for all facilities and collection services. Rates are provided for disposal of municipal solid waste (MSS and brush and yard waste at the transfer station and compost facility, as well as collection rates for residential and commercial trash and recycling. Additional general recommendations for the ongoing financial management of the City's Recycling and Trash Division are also provided. U r% 00NSULTFINTS 1-2 City of Fayetteville 2. WASTE MANAGEMENT SYSTEM DESCRIPTION 2.1 INTRODUCTION This section briefly describes the City's solid waste management program, including the facilities owned and operated by the City, as well as the collection services offered. Current rates are summarized. The information in this section has been assembled from a combination of data and reports provided by the City to MSW Consultants during the project. Additionally, MSW Consultants attended a kickoff meeting with the City's Chief of Staff and Recycling and Trash Division leadership on March 13, observed collection operations on a limited number of routes, toured City solid waste facilities, and maintained ongoing contact with City staff in the performance of this analysis. 2.2 SOLID WASTE FACILITIES The City owns the following solid waste facilities: 2.2.1 TRANSFER STATION The City owns and operates a transfer station that is used by its collection vehicles as well as being open to the public. The transfer hauling and disposal is contracted out to Waste Management, who subcontracts the hauling to MBI. At the time of the site visit, the transfer station was permitted for 80,000 tons per year and had received near that amount in 2017. The City has since applied for permit expansion for up to 100,000 tons annually. During busy times of the day, there is a line of traffic entering the facility at the scale house and waiting for an open bay to offload materials. Small trucks with trailers often offload by hand and could take an hour or more to empty a load of bulky items or shingles, for example. There are 2.5 FTE (Full Time Equivalent) staff assigned to the transfer station. Figure 2-1 and Figure 2-2 show scenes from the transfer station during the site visit. Figure 2-1 Vehicles Waiting to Weigh in at Scales Figure 2-2 Truck Backing to Empty in Transfer Station The current rates charged at the transfer station are provided in Table 2-1. The City's contract with Waste Management for transportation and disposal of wastes from the transfer station costs $35.58/ton. Table 2-1 Transfer Station Rates Material/Item Rate Refuse $46.80/ton Minimum Fee $29.95/load City of Fayetteville 2-1 CONSULTI N-rS 2. WASTE MANAGEMENT SYSTEM 2.2.2 COMPOST FACILITY The City operates a compost facility that receives waste from City yard waste collections as well as public haulers. The compost pad is approximately 3 acres. The facility accepts brush, leaves and grass and recently began processing food waste as part of a pilot collection program to expand organics composting. The facility is adjacent to the container maintenance shop and container storage area. There are 2 FTE (Full Time Equivalent) staff assigned to the compost facility. Figure 2-3 and Figure 2-4 show scenes from the compost facility during the site visit. Figure 2-3 Windrow Turner, Windrows Compost Processing Pad Figure 2-4 Private Haulers Unloading at Compost Facility The City sells the finished compost product and also sells mulch in bulk as long as supplies are available. The current rates charged at the compost facility for incoming material are provided in Table 2-1. Table 2-2 Compost Facility Rates Per Load Size Leaves/Grass/ Brush Rate Compact Pickup Truck $5.00 Full Sized Pickup Truck $8.00 Trailers up to 14' long $10.00 Trailers greater than 14' long $15.00 2.2.3 RECYCLING CENTER Fayetteville operates a recycling center that receives curb -sorted recyclables, commercial OCC and materials the City from two public recycling drop-off facilities. The operators bale materials for marketing and coordinate the transport of bulked glass to a glass processor, currently Ripple Glass. There are 3 FTE (Full Time Equivalent) staff assigned to the recycling center. Figure 2-5 and Figure 2-6 show a load of commercial cardboard unloading at the baler as well as the baled materials on site prepared for marketing. �OONSULXMNT� 2-2 City of Fayetteville 2. WASTE MANAGEMENT SYSTEM Figure 2-5 Commercial Cardboard Truck Offloading at the Recycling Center I Figure 2-6 Baled Materials Ready for Marketing 2.2.4 CITIZEN RECYCLING DROP-OFFS The City operates two recycling drop-off sites, one adjacent to Trash and Recycling Division headquarters and the Marion Orton Recycling Center on the north side of town. The sites are manned, with City staff providing oversite and guidance to citizens dropping off materials as well as maintaining site cleanliness. Materials are collected in roll -off containers and recycling center operators are dispatched to service the containers as needed. The Marion Orton Recycling Center was very busy during the time observed. Figure 2-7 and Figure 2-8 show the recycling drop-off centers during the site visit. Figure 2-7 Attendant Assisting Citizen at North Street Drop -Off 2.2.5 Sluwv ARY Figure 2-8 Recycling Drop-off Adjacent to Division Headquarters Table 2-3 summarizes the tonnage by facility for the most recent annual period. As shown, these facilities managed over 91,000 tons of material. City of Fayetteville 2-3 C ©N S U LTf:1 NTS 2. WASTE MANAGEMENT SYSTEM Table 2-3 2017 Tonnage by Facility Facility Tons Compost Facility 7,516 Transfer Station 77,791 Recycling Center 6,080 TOTAL 91,387 2.3 COLLECTION SERVICES The City operates full-service refuse, recycling and yard waste collection programs for the citizens and businesses of Fayetteville and the immediate vicinity. There are 44.5 FTE staff assigned to collections. 2.3.1 RESIDENTIAL REFUSE Seven automated residential refuse routes run Monday through Thursday, covering collection throughout the City and a few surrounding accounts. A few commercial businesses and multi -family locations that use carts are serviced by the residential trucks as they are in the area. Review of historical truck weights revealed the automated sideloaders used for residential refuse collection average approximately 8.65 tons per load. Figure 2-9 and Figure 2-10 show a typical residential setout of recycling and refuse and an automated collection of refuse in process. Figure 2-9 Refuse Can` and Recycling Bin Setout Figure 2-10 Automated Trash Collection The Fayetteville residential refuse rate structure is a Pay -As -You -Throw (PAYT) system with three cart size options (32-, 64- and 96 -gallon) with additional charges assessed for materials loaded above the top of the bin and extra bags placed outside the container. They also offer an exemption to curbside placement for citizens having gone through an approval process. Figure 2-11 and Figure 2-12 display a driver out of the cab handling additional bags and providing service to a location with exemption. �00NSU UrF:1 WrS 2.4 City of Fayetteville Figure 2-11 Driver Out of Cab Depositing Extra Bags into Cart to Tip d JL WASTE MANAGEMENT SYSTEM Figure 2-12 Driver Returning to Truck After Returning "Exempt" Bin to Citizen's Door 2.3.2 RESIDENTIAL RECYCLING Similar to refuse, curbside recycling routes run Monday through Thursday. The City provides a curb sort system, so that residents set out materials with containers in a City -provided bin and fiber materials either in a second bin, flattened and stacked, or in a paper bag. Eleven one-person routes provide this service, stopping at each set out and sorting materials into compartmentalized trucks before proceeding to the next stop. Figure 2-13 and Figure 2-14 display a driver out of the cab curbsorting materials and an overflowing bin with materials placed together rather than separated into containers and fibers as should be to comply with the program guidelines. Figure 2-13 Driver Curbsorting Residential Recycling Figure 2-14 Residential Recycling Set Out Incorrectly in One Bin 2.3.3 RESIDENTIAL YARD WASTE The City operates two -yard waste collection routes Monday through Thursday. Residents may place materials out in paper bags or bundled. The site visit was conducted in mid-March, prior to consistent weather for yard work, but several sizeable piles observed while following the yard waste route were indicative of the spring-like weather the area had experienced the days leading up to the site visit. Figure 2-15 displays the two-man residential yard waste collection service. City of Fayetteville 2-5 C © NSU LTFI NTS 2. WASTE MANAGEMENT SYSTEM Figure 2-15 Yard Waste Collection 2.3.4 RESIDENTIAL BULKY The City offers a fairly extensive bulky collection program to residents with various options available: ♦ Eight neighborhood bulky item collections per year, one Saturday in the spring and fall at four different areas of the City. ♦ One free item picked up curbside per year by calling in or optionally bring five items to the transfer station at no charge, providing their water bill for proof of residency. Items are categorized as bulk household, bulk metal and bulk brush. ♦ Additional items can be scheduled for curbside collection for a fee. Figure 2-16 shows the grapple truck collecting a pile of bulk brush during route observations. Figure 2-16 Bulky Brush Collection 2.3.5 RESIDENTIAL SiAVIlVIARY Fayetteville services approximately 24,000 residential accounts, providing weekly refuse, recycling and yard waste collection and bulky wastes. The number of accounts by cart size and existing rates are presented in Table 2-4. The City also serves a few hundred accounts outside the City limits that are not shown in the table. �CONSU1..mm-rs 2-6 City of Fayetteville 2. WASTE MANAGEMENT SYSTEM Table 2-4 Residential Refuse Customer and Rate Summary Service Level Number of Accounts Rate 32 gal. Trash & 96 gal. Recycling 6,087 $9.68/month 64 gal. Trash & 96 gal. Recycling 12,724 $14.78/month 96 gal. Trash & 96 gal. Recycling 5,276 $20.98/month Extra Waste/Bags Outside Cart (4 free/yr) $6.40/ea. Exchange to Larger Container Fee $20.00/ea. Bulk Waste Pickup (1 free/yr) $45.00 Total 24,415 Residential rates are allowed to be increased by a Consumer Price Index adjustment annually by Ordinance, or Council may opt to waive the increase. Tonnage information was provided by the City for materials collected. Table 2-5 reflects the quantities collected from residential customers for calendar year 2017. Table 2-5 Residential Quantities Collected Service Tons Refuse 14,960 Recycling 3,062 Bulky Waste 101 Yard Waste 2,150 Total 20,273 2.3.6 COMMERCIAL AND MULTIFAMILY REFUSE CONTAINER COLLECTION Commercial collection is provided Monday through Friday with six frontloading dumpster routes and two routes on Saturday for high-volume customers. Both residential and commercial routes collect containers at multi -family locations, depending on whether the location uses carts or frontloading dumpsters. MSW Consultants observed commercial refuse and multi -family dumpster collection. Figure 2-17 and Figure 2-18 show a frontloading truck servicing a commercial dumpster and then later in the route a multifamily container. City of Fayetteville 2-7 C© NSU LTFINTS 2. WASTE MANAGEMENT SYSTEM Figure 2-17 Commercial Refuse Service r'; V Figure 2-18 Refuse Service at a Multi -Family Complex Commercial routes run six days per week. Table 2-6 provides a current look at the number of commercial refuse customers at each service level. As shown, the City is currently servicing over 1,300 containers. Table 2-6 Commercial Refuse Customer Summary Services Per Week Total Container Size ` 3 2 3 4 5 6 Containers 2 CY 254 22 8 3 0 0 287 4 CY 220 150 39 4 5 1 419 6 CY 178 187 39 4 5 1 414 8 CY 40 83 27 10 14 15 189 TOTAL 692 442 113 21 24 17 1,309 2.3.7 COMMERCIAL AND MULTI -FAMILY RECYCLING Commercial routes collect Old Corrugated Cardboard (OCC) daily, and Mixed Paper one day per week. Table 2-7 provides a customer summary for the commercial OCC Recycling collection routes. The City also collects Mixed Paper from 24 four cubic yard containers once per week. Table 2-7 Commercial OCC Recycling Customer Summary Container Services per Week Total Size 1 2 3 4 5 Containers 4 CY 64 _ 10 18 3 2 97 6 CY 40 17 9 1 2 69 8 CY 5 9 4 2 4 24 TOTAL 109 36 31 6 8 190 [��CON!5UUr INTS 2-8 City of Fayetteville 2. WASTE MANAGEMENT SYSTEM If site logistics and management allow, multifamily residents can participate in mixed recycling with large segregated recycling drop -boxes available for apartment complexes. At the time of the site visit, 7 locations were participating by allowing space for the equipment, referred to as a "battleship." 2.3.8 DROP -Box The City runs two drop -box roll -off trucks Monday through Friday. Roll -offs are also deployed to collect large -volume recyclables for rates discounted from refuse rates. Private haulers compete for the drop -box business throughout the City. 2.3.9 COMMERCIAL RATE SUMMARY Monthly rates for commercial frontload and drop -box refuse and recycling collection services are provided in Table 2-8, and Table 2-9 Table 2-9. There are also a few accounts subscribed to weekly collection of mixed paper in four cubic -yard dumpsters for $24 per month. Table 2-8 Commercial Collection Rate Matrix Material Refuse OCC Frequency Size 1 2 3 4 5 6 2 $32.76 $65.52 $98.28 $131.04 $163.80 $196.56 4 $65.52 $131.04 $196.56 $262.08 $327.60 $393.12 6 $98.28 $196.56 $294.84 $393.12 $491.40 $589.68 8 $131.04 $262.08 $393.12 $524.16 $655.20 $786.24 4 $32.76 $65.52 $98.28 $131.04 $163.80 $0.00 6 $49.14 $98.28 $147.42 $196.56 $245.70 8 $65.52 $131.04 $196.56 $262.08 $327.60 Table 2-9 Drop Box Rates Drop Box Rate 20 CY Pull Charge (per Pull) $220.00 30 CY Pull Charge (per Pull) $230.00 40 CY Pull Charge (per Pull) $240.00 Contractor Rate Pull Charge (per Pull) $210.00 Delivery Fee (per Occurrence) $50.00 Cardboard Only 20 CY Pull Charge (per Pull) $110.00 Cardboard Only 30 CY Pull Charge (per Pull) $115.00 Cardboard Only 40 CY Pull Charge (per Pull) $120.00 Disposal (per Ton) $38.25 Daily Rental Over 30 Days (per Day) $2.00 Monthly Rental (per Rental) $60.00 Relocation (per Trip) $50.00 Recycling Roll -off Disposal (per Ton) $0.00 City of Fayetteville 2-9 C © N S U LTR N TS 2. WASTE MANAGEMENT SYSTEM The City offers a locking bar for commercial dumpsters for an additional $65 fee. The City has a ten percent franchise fee on trash and five percent on recyclables that remains in the Recycling and Trash Collection fund. 2.3.10 COLLECTION SLUvMiARY The City provides full-service collection for both residential and commercial customers. The primary routes running weekly are identified in Table 2-10. Table 2-10 Summary of Daily Collection Routes _Type of Service Mon Tue Wed Thu Fri Sat Residential Garbage Collection 7 7 7 7 Residential/Curbside Recycling 11 11 11 11 Residential Yard Waste 2 2 2 2 Bulk Truck 1 1 1 1 Cart Delivery Truck (Carts & Recycle Bins) 1 1 1 1 Container Delivery Truck (FL Dumpsters) 1 1 1 1 1 Commercial Trash Collection - Front Load 6 6 6 6 6 2 Commercial Trash Collection - Roll Off 2 2 2 2 2 Commercial Recycling - OCC 1 1 1 1 1 Commercial Recycling- Paper 1 Commercial Recycling - Glass Pilot 1* Commercial Recycling- Food Waste Pilot 1* 1* 1* Recycling Drop-off Site Collection 1 1 1 1 1 TOTAL 35 33 35 33 12 2 * Partial Day Route Based on MSW Consultants' assessment and observations during the kick-off meeting and site visit, the City is effectively running the facilities and the collection system is operating efficiently providing a broad range of services to the community. I Z,�]COIVSIJLTFiNT5 2-10 City of Fayetteville 3. COST -OF -SERVICE ANALYSIS 3.1 INTRODUCTION This project included a formal solid waste management cost -of -service and rate study for the Fayetteville Recycling and Trash Division. This section summarizes the City's historical financial performance and current budget projections, and identifies the primary inputs to the financial analysis undertaken to validate service rates. This section also projects the incremental costs associated with the expansion of the organics collection and apartment recycling opportunities, which increase the cost of the system going forward. The rate study process consists of three primary components: Revenue Sufficiency Analysis: In this step, the existing revenue stream for collection services and facility operations are assessed to determine if it is capable of meeting the projected financial requirements of the system (including operating expenses, capital improvements and vehicle replacements) during the forecast period. Cost of Service Analysis: The second step involves development of suitable methodologies to allocate system revenue requirements to the various customer classes that are responsible for funding the cost of services they are receiving, and also compiling the number of customers receiving each service. The City accounts separately for service to city residents and outer "growth" area residents for several different service levels as well as billing commercial accounts directly for collection service, so this exercise required applying the accounts based on cart size (residential) and commercial container type and service frequency to reach cost -of -service. Rate Design: Finally, specific rates and charges must be designed which provide sufficient revenue, as identified in the Revenue Sufficiency Analysis, to recover costs in a manner consistent with overall solid waste management system policies and goals. The development of rates should, for the most part, be consistent with general rate -making principles as recognized in the industry and related literature. In general, rates designed should: ♦ Generate a stable revenue stream which, when combined with other sources of funds, is sufficient to meet the financial requirements and goals of the City; Be easy to understand by customers; Be easy to administer by the City; and Minimize customer impact. 3.2 RATE STUDY DEVELOPMENT 3.2.1 FINANCIAL DATA MSW Consultants compiled historical budget data to put the overall system cost in context. The following historical data were compiled. Historical Operating Results: Figure 3-1 shows the City's historical operating revenues and operating expenses plus capital. As shown, the City solid waste operation has operated at a loss multiple times over the past five years, and fund reserves have been required to supplement revenue to cover expenses. City of Fayetteville 3-1 [;=A CONSUL?Rr4-r5 3. COST -OF -SERVICE ANALYSIS Figure 3-1 Historical Operating Results $16 $14 $12 $10 cn $8 C o_ $6 $4 $2 $0 Actual Actual Actual Estimated Budget Submission 2015 2016 2017 2018 2019 Revenue Operating Expenses plus Capital Operating Fund Balance: The City has maintained conservative management of their recycling and trash collection system, accruing cash to pay for capital purchases. In recent years, the City has purchased all collection equipment, as well as its LEED certified administration building improvement, with cash. Accordingly, the historical results reflect significant spikes in the cost of the system, because cash outlays vary dramatically from year to year. At the current time, the City's operating reserves have been drawing down, and as the program expansions occur in the next few years, additional revenue will be required. Table 3-1 displays the basis used in the cash flow analysis, as provided by the City. Table 3-1 Estimated Basis of Operating Reserve Starting Balance, FY19 Operating Reserves FY19 Beginning of Year $5,200,000 Target Reserve Policy 60 days Collection Customers and Material Quantities: Collection customers by service category have been summarized in Section 2. Table 3-2 provides the historical materials processed at the compost facility, recyclable materials managed at the recycling facility, and waste received and transferred at the transfer station. This includes the projected quantities for 2019 with a two percent growth factor. zr _ i jT I momSu rmm-rS 3-2 City of Fayetteville 3. COST -OF -SERVICE ANALYSIS Table 3-2 Billing Determinants: Tons Processed Facility 2017 2018 2019 Compost Facility 7,516 7,666 7,820 Transfer Station 77,791 79,347 80,934 Recycling Facility 6,080 6,201 6,325 Total 91,387 93,215 95,079 3.2.2 CAPITAL IMPROVEMENT PLAN City staff provided a plan for future Capital Improvements spanning the next ten years. Table 3-3 summarizes the land acquisition and facility expansions and improvements projected for the next 10 years. As shown, over $4.4 million in capital improvements is planned. Table 3-3 CIP Summary Item Year Amount Transfer Station Improvements 2019 $150,000 Scale House Improvements 2019 $42,000 Organics Carts Expansion 2020 $610,000 Compost Site Improvements 2020 $15,000 Transfer Station Improvements 2021 $20,000 Recycling Facility Improvements 2021 $64,000 Recycling Facility Improvements 2022 $420,000 None Planned 2023 $0 Recycling Drop -Off Center 2024 $500,000 Land Acquisition & Facility Expansion 2024 $1,000,000 Land Acquisition & Facility Expansion 2025 $1,000,000 Transfer Station Improvements 2025 $620,000 None Planned 2026 $0 None Planned 2027 $0 None Planned 2028 $0 10 Year Total $4,441,000 Annual Average CIP $444,100 In addition, planning for the routine replacement of collections vehicles and mobile equipment must be incorporated into full cost projections. The financial analysis performed for this project includes a detailed schedule of collection vehicles and rolling stock replacement timing and capital cost. Figure 3-2 summarizes the annual vehicle/ equipment replacement schedule. As shown, the City needs to spend an average of roughly $2 million annually to maintain its vehicle fleet, although there are peaks and valleys from year to year. City of Fayetteville 3-3 r.=.. C©NSULTFINTS 3. COST-OPSERVICE ANALYSIS Figure 3-2 Vehicle/ Equipment Addition and Replacement Schedule $4 $3 U) C: $2 $1 $0 2019 2020 2021 2022 2023 Additional/Replacement Cost M OR M 2024 2025 2026 2027 2028 Annual Average 3.2.3 PROJECTED COST OF PROGRAM EXPANSIONS The City has been collecting commercial organics at a limited number of locations as a pilot program for the past few years. The City has also been providing a commercial glass recycling collection program in select areas as a pilot. The City provided its estimate of the incremental staff and vehicle resources that are needed to ramp up these services. Table 3-4 presents the additional staffing and fleet identified for each program. Table 3-4 Incremental Resources for Program Expansion Program Organics Collection Glass Collection Apartment Recycling Curbside Recycling (growth) Recycling Educator Incremental FTE Incremental Trucks 2 2 2 1 1 Total 6 4 3.3 COST -OF -SERVICE ANALYSIS This section describes the framework and findings of the cost -of -service analysis. The purpose of this analysis was to evaluate the degree to which each facility and collection service is able to recover full costs. 3.3.1 RECYCLING AND TRASH DIVISION FUNCTIONS The City accounts for each of the services it provides within its accounting system. These departments were used as a basis to define the specific functions to be analyzed in the cost -of -service analysis. Table 3-5 summarizes the functions included in the cost -of -service analysis. mONSuLTFINTS 3-4 City of Fayetteville 3. COST -OF -SERVICE ANALYSIS Table 3-5 Recycling and Trash Division Functions Management & Administration Collections: Automated Refuse Curbside Recycling Curbside Yard Waste Bulky Collection Facilities: Commercial Container Refuse Transfer Facility Commercial Container OCC Recycling Compost Facility Commercial Paper Recycling Recycling Facility Drop Box Collection Apartment Recycling Food Waste Collection Glass Collection Recycling Drop-off 3.3.2 SYSTEM NET REVENUE REQUIREMENT "Net Revenue Requirement" is defined as the dollar amount that must be recouped via rates (i.e., collection fees, and tip fees at the transfer station and compost facility). The following methodology was used to determine the net revenue requirements and calculate rates: ♦ Compile gross revenue requirements as the sum of operating and non-operating expenses, plus average capital improvement, and average vehicle replacement. ♦ Net out non -rate revenues, which are primarily recycled material revenues, compost sales, and interest income. As a result of these steps, the overall system cost of $13.5 million is offset by $673,000 in non -rate revenues (primarily revenues from the sale of recyclables), leaving a net revenue requirement of $12.8 million which must be recouped by rates for disposal, processing and collection. Table 3-6 Full Cost of Service for Solid Waste Fund Item Full Costs Non -Rate Revenues Dollars $13,507,985 $673,040 Revenue Sufficiency $12,834,945 3.3.3 ALLOCATIONS The final step in the cost -of -service analysis was to allocate all system costs to the functions defined in Section 3.3.1. MSW Consultants developed a series of allocation factors to accomplish this task, which are summarized in Table 3-7. Note that this list is not all-inclusive; however, these are the major system costs. City of Fayetteville 3-5 C© NSU LTFI NTS 3. COST -OF -SERVICE ANALYSIS Table 3-7 Allocation Methods Method Allocation Basis Employee Salary FTE Percentages Employee Benefits FTE Percentages Employee Count FTE Percentages Truck Count Truck Type and Use Vehicle Cap Cost Truck Type and Use Vehicle 0&M Truck Type and Use Tonnage Collected Material Tonnage Tonnage Processed Material Tonnage CIP Assigned by Function Container Maintenance Assigned by Function Routes Assigned by Function Admin Percent of Division Budget Compost Facility Staff and Equipment Transfer Station Staff and Equipment Recycling Center Staff and Equipment Food Waste Collection Staff and Equipment Disposal Material Tonnage Recycling Revenue Material Tonnage Apartment Recycling Staff and Equipment Table 3-8 shows the results of the cost allocation exercise. The first column (Annual Revenue Need) in the table separates the cost of system Management and Administration. The second column (Adjusted Annual Revenue Need) distributes the Management and Administrative cost across the other services so that rates we will recovery the overhead expense. As shown, the City of Fayetteville must recover $12.8 million in rate revenues to fully fund the system full cost. [CfiJNSULTIFINTS 3-6 City of Fayetteville 3. COST -OF -SERVICE ANALYSIS Table 3-8 Recycling and Trash Rate Revenue Requirement Function Management & Administration Collection Automated Refuse Curbside Recycling Curbside Yard Waste Bulky Collection Commercial Container Refuse Commercial Container OCC Recycling Commercial Paper Recycling Dropbox Collection Apartment Recycling Food Waste Pilot Glass Pilot Recycling Drop -Off Facilities Compost Facility Transfer Station Recycling Facility Annual Revenue Need Adjusted Annual Revenue Need $1,791,866 $6,617,524 $7,691,293 $1,835,651 $2,133,506 $1,346,925 $1,565,479 $439,170 $510,430 $61,611 $71,608 $1,534,894 $1,783,948 $217,317 $252,580 $15,884 $18,461 $566,688 $658,639 $242,539 $281,894 $206,794 $240,349 $17,662 $20,528 $132,390 $153,872 $4,425,555 $5,143,652 $543,362 $631,528 $3,533,013 $4,106,285 $349,180 $405,839 Total $12,834,945 $12,834,945 3.3.4 SYSTEM DEFICIT As a final step, the allocated system full cost was compared to the revenues generated with the City's current rate structure. As shown in Table 3-9, the current rates will not generate enough revenue to fund the system, instead resulting in a deficit of over $1.3 million or 10.7 percent. Table 3-9 System Surplus (Deficit) Item Revenues at Current Rates Full Cost Surplus (Deficit) Dollars $11,458,196 $12,834,945 ($1,376,750) Percent 89.3% 100.0% (10.7%) A detailed breakdown of revenue sufficiency by service is shown in Figure 3-3. City of Fayetteville 3.7 C© NSU LTFI NTS 3. COST -OF -SERVICE ANALYSIS Figure 3-3 Revenue Sufficiency Under Existing Rates $6 c 0 $5 $4 $3 $2 $0 , Single Family Multi -Family Commercial Commercial Drop -box Scale/Tip Fees Residential Residential Refuse Recycling Containers ■ Current Rate Revenue 1 Full Cost Revenue Need As shown in this figure, the revenue shortfall is relatively consistent across all collection services and facility operations. Additionally, although the multi -family sector reflects a surplus, some of the multi -family revenue covers the cost of the drop-off centers, which serve many multi -family apartments which do not have on site recycling collection. The following section applies the results of this cost -of -service analysis to compare current rates with full - cost rates, and to subsequently recommend rate adjustments for consideration by the City. ®CONSLILTFINTS 3-8 City of Fayetteville 4. CONCLUSIONS AND RECOMMENDATIONS 4.1 INTRODUCTION The City of Fayetteville is in a fast-growing region. Material throughput at the City's transfer station has required permitting of additional tonnage capacity twice in the last five years. The City's collection routes have grown throughout this timeframe as well. Organics and glass collection pilot programs are scheduled to expand, and the City continues to implement initiatives adopted at the conclusion of its 2016 Solid Waste Reduction, Diversion, and Recycling Master Plan This cost -of -service and rate study captures the impact of these new programs as well as other dynamics facing the system. The remainder of this section identifies rate options and recommends new rates for the five-year planning period. Based on significant collaboration between MSW Consultants and City staff, and based on MSW Consultants' professional experience, the analysis of rates integrated the following concepts: Tiered Transfer Station Tip Fees: Tip fees should cover the full cost of transfer station operation, transportation, and disposal. However, the City's transfer station also provides a high level of convenience for out -of -City residents and businesses to avoid a longer drive to the landfill. Because the transfer station should first and foremost serve the City and its residents and businesses, there should be one rate for City -generated wastes, and a higher tip fee for out -of -City wastes. Multi -family Rates: The City's Pay -As -You -Throw (PAYT) single family residential rates cover both refuse and recycling collection, and even provide an incentive for residents to utilize the recycling program. In order to treat single family and multifamily households similarly, this study identified an all-inclusive rate structure for multi -family properties to provide the same opportunity to recycle within a given rate, rather than subscribe additionally, and the City offers a variety of recycling services (battleship roll -off, curbside, or recycling drop-off) depending on the logistics of the multi -family site. All -Inclusive Commercial Rates: Historically, commercial businesses have usually only required refuse collection. However, the City offers recycling collection to businesses that desire this service. Rather than charging separately for the commercial refuse service and the commercial recycling service, one option is to charge a single rate to all businesses and provide recycling collection under the single collection rate. This option would give businesses an incentive to recycle because the service would be free (i.e., covered by the refuse rates). However, there is a wide range of recycling service levels that are required by different businesses, so the potential for subsidization across customers is high under this option. Recycling-Incentivizing Commercial Rates: Conversely, the City could continue to charge separate rates for commercial refuse and commercial recycling. Consistent with the current fee structure, commercial trash rates could also be escalated so that recycling collection rates could be discounted. This approach spreads the cost of the commercial recycling collection to all commercial trash customers, but retains some direct charge to businesses that select the appropriate level of recycling collection, thereby reducing subsidization across commercial customers. City staff and MSW Consultants collaborated on combinations of the above rate considerations and developed a hybrid rate path that was presented to the Water and Sewer Committee on November 13, 2018. This recommended rate path maintains the separate, incentivizing commercial trash and recycling rates for businesses, but incorporates an all-inclusive rate for the multi -family customers. The new rate structure provides more opportunity for on-site recycling as well as the trash collection without a rate increase. Systemwide, the recommended rates represent a 9.1 percent increase, with higher increases on some services, and lower increases on others. It should be noted that in order to keep these increases as moderate as possible, there will likely be need for systemwide CPI increases within a few years. City of Fayetteville 4-1 M7P!! C O NSU urn NTS 4. CONCLUSIONS AND RECOMMENDATIONS This section summarizes the new rate recommendations. 4.2 RATE RECOMMENDATIONS 4.2.1 RESIDENTIAL COLLECTION SERVICES The City offers three sizes of carts to allow citizens to pay by volume, whether it be from various family sizes, or from environmentally focused families who divert a lot of material. A fee is assessed for overflowing materials or additional bags placed out beyond a base allowance per household per year. The City also services a few residential areas outside the City limits for a slight incremental difference. Each rate covers weekly curbside collection of trash, recycling and yard waste as well as some bulky waste collection. Table 4-1 displays the recommended rate structure for single-family residential accounts. These rates represent a five percent increase for each cart size. Table 4-1 Residential Rate Recommendation Service Current Rates Full Cost Rates Recommended Rates 1x/wk Refuse 32 Gal. & Recycling Bins (per Month) - City $9.68 $17.32 $10.16 1x/wk Refuse 64 Gal. & Recycling Bins (per Month) - City $14.78 $18.60 $15.52 1x/wk Refuse 96 Gal. & Recycling Bins (per Month) - City $20.98 $19.89 $22.03 Additional Bulky Pickups Curbside (per Occurrence) $45.00 $38.25 $55.00 Extra Bag Charge (per Occurrence) $6.40 $0.97 $6.72 1x/wk Refuse 32 Gal. & Recycling Bins (per Month) - Outer Area $14.54 $17.32 $15.25 1x/wk Refuse 64 Gal. & Recycling Bins (per Month) - Outer Area $22.17 $18.60 $23.28 1x/wk Refuse 96 Gal. & Recycling Bins (per Month) - Outer Area $31.48 $19.89 $33.04 4.2.2 MULTIFAMILY COLLECTION SERVICES The City provides trash service to multi -family structures of three or more units. Collection is provided primarily by the commercial routes. Recycling opportunities have been developed since implementing the "battleship" program in 2011, where a multi -family location has a dedicated space for a compartmentalized roll -off container. The City is currently in the process of rolling out additional multi -family recycling opportunities through curbside bins at locations this is geographically feasible. The recommended multi- family rate is the same as the current rate, but incorporates the recycling service ,without additional charge. Table 4-2 provides the new all-inclusive rate structure. These rates slightly reduce the overall charge to the multi -family sector. Table 4-2 Multi -Family Monthly Rate Recommendation Current Service Rates Full Cost Rates Recommended Rates Trash Service with No Recycling $9.72 $4.91 $9.72 Trash Service with Battleship Recycling Trash Service with Curbside Recycling $10.69 N/A 4.2.3 COMMERCIAL CONTAINER COLLECTION SERVICES Commercial Trash Container Rates $6.17 $9.72 $9.38 $9.72 I Z P=IT ICONSULTFINTS 4-2 City of ayetteville 4. CONCLUSIONS AND RECOMMENDATIONS The City's existing commercial trash rates are low and out of balance, more so for the smaller containers. This occurs when rates are established primarily based on yardage collection costs then over time "across- the-board" increases are applied. This approach does not conform to industry standard commercial container rate development. Cost -based commercial container rates allocate collection costs based on service frequency and separately allocate disposal costs based on volume. MSW Consultants developed more equitable cost -based commercial rates to better rebalance the rate structure. Though the recommended rate does not get the smaller containers up to their full costs, they are receiving a larger increase to be brought closer to full cost. Table 4-3, Table 4-4, and Table 4-5 provide the current rates, full cost rates, and recommended rates for commercial trash collection. Table 4-3 Current Commercial ($/Month) Trash Rates Container Services per Week _ Container Size 1 2 3 4 Size1 6 2 3 4 5 6 2 CY $32.76 $65.52 $92.28 $131.04 $163.80 $196.56 4 CY $65.52 $131.04 $196.56 $262.08 $327.60 $393.12 6 CY $98.28 $196.56 $294.84 $393.12 $491.40 $589.68 8 CY $131.04 $262.08 $393.12 $524.16 $655.20 $786.24 $144.00 Table 4-4 Full Cost Commercial ($/Month) Trash Rates $720.00 $864.00 Services per Week Container Services pet- Week -- ._-...---.- .. _ Container Size 1 2 3 4 5 6 2 CY $80.33 $160.66 $240.99 $321.32 $401.64 $481.97 4 CY $100.23 $200.45 $300.68 $400.90 $501.13 $601.36 6 CY $120.12 $240.25 $360.37 $480.49 $600.62 $720.74 8 CY $140.02 $280.04 $420.06 $560.08 $700.10 $840.12 Table 4-5 Recommended Commercial (Monthly) Trash Rates Commercial Recycling Container Rates The current commercial corrugated cardboard and paper recycling container collection rates are set at 50 percent of the same container size and service level trash container rates. Based on consultation with City City of Fayetteville 4-3 CO N S U LTF=1 NTS Services pet- Week -- ._-...---.- .. _ Container Size 1 2 3 4 5 6 2 CY $47.50 $95.00 $142.50 $190.00 $237.50 $285.00 4 CY $88.45 $176.90 $265.35 $353.80 $442.25 $530.70 6 CY $115.00 $230.00 $345.00 $460.00 $575.00 $690.00 8 CY $144.00 $288.00 $432.00 $576.00 $720.00 $864.00 Commercial Recycling Container Rates The current commercial corrugated cardboard and paper recycling container collection rates are set at 50 percent of the same container size and service level trash container rates. Based on consultation with City City of Fayetteville 4-3 CO N S U LTF=1 NTS 4. CONCLUSIONS AND RECOMMENDATIONS staff, it is recommended that recycling rates be further reduced to 25 percent of the trash rates. This recommendation is driven by the City's Master Plan recycling targets to increase recycling. Commercial Organics and Glass Container Rates Consistent with corrugated cardboard and paper collection, the recommended rates for commercial organics and glass collection are subsidized by the commercial trash rates. Organic collection rates are set at 25 percent of similar trash service level rates and glass is recommended at $5.00 per month for weekly collection of a roll cart. Small businesses also have the option of using five 18 -gallon recycling bins with weekly pickup for $5.00 per month. Table 4-6 provides the current, full cost and recommended rates for these services. Table 4-6 Commercial Organics, Glass and 18 -Gallon Bin Monthly Recycling Rates Service Current Rates Full Cost Rates Recommended Rates Recycling Five 18 Gal. Bins 1x/wk $5.97 $9.37 $5.00 Glass 95 Gal. Cart 1x/wk (per Cart) $0.00 $46.44 $5.00 Food Waste 4 CY 3x/wk $0.00 $539.44 $66.34 Food Waste 2 CY 3x/wk $0.00 $240.99 $49.75 Food Waste 32 Gal. Cart 3x/wk $0.00 $37.98 $14.87 It is noteworthy that the full cost of the commercial food waste service appears quite high. This result is driven by the relatively small number of customers for this service in its startup phase. The total cost to provide this service is relatively low on an absolute basis, despite the high unit cost. 4.2.4 DROP BOX COLLECTION SERVICES The City provides drop box collection to permanent customers as well as for temporary usage. Previously, a pull fee had been charged, incrementally higher based on the container size, with a tip fee per ton equal to the rate the City paid the contractor to transport the materials for disposal. It is strongly recommended that the tip fee for drop box loads be based on the full cost per ton at the transfer station, and not solely on the contracted disposal cost. This will assure that the City covers its handling costs in addition to the contracted transfer expense. It is further recommended that the pull fees be standardized regardless of the size of the drop box. This is because it costs the City the same amount to pull any box, regardless of the size of the box. Table 4-7 provides the current, full cost and recommended rates for drop box services. Consistent with other commercial recycling rates, recycling drop -box rates are deeply discounted to provide incentive. C O N!—= U LTFI N TS City of Fayetteville 4. CONCLUSIONS AND RECOMMENDATIONS Table 4-7 Drop Box Trash and Recycling Rates Service 20 CY Pull Charge (per Pull) 30 CY Pull Charge (per Pull) 40 CY Pull Charge (per Pull) Contractor Rate Pull Charge (per Pull) Trash Disposal (per Ton) Cardboard Only 20 CY Pull Charge (per Pull) Cardboard Only 30 CY Pull Charge (per Pull) Cardboard Only 40 CY Pull Charge (per Pull) Recycling Roll -off Disposal (per Ton) Full Cost Current Rates Rates $220.00 $230.00 $240.00 $210.00 $38.25 $110.00 $115.00 $120.00 $0.00 $212.67 $212.67 $212.67 $212.67 $50.74 $212.67 $212.67 $212.67 $64.16 Recommended Rates $225.00 $225.00 $225.00 $210.00 $52.00 $95.00 $95.00 $95.00 $20.80 4.2.5 FACILITY FEES As discussed previously, the City wishes to have different tip fees for outside haulers as opposed to city residents bringing materials to the transfer station. Table 4-8 provides the recommended rate structure. Table 4-8 Transfer Station Scale Rates Current Full Cost Recommended Service Rates Rates Rates Disposal (Resident) (per Ton) $46.80 $50.74 $52.00 Disposal (Out of Town) (per Ton) $46.80 $50.74 $60.00 The City does not scale public vehicles bringing materials to the Compost Facility. An attendant estimates the load volume and provides a ticket based on vehicle type and/or volume. Table 4-9 provides the current and recommended rates. The recommendation is based on estimated expenses and represents a five percent increase. Table 4-9 Compost Facility Rates (per Load) Service Current Rates Recommended Rates Compact Pickup Truck $5.00 $5.25 Full Size Pickup Truck $8.00 $8.40 Trailers Up to 14 FT $10.00 $10.50 Trailers Greater Than 14 FT $15.00 $15.75 4.3 PROJECTED FINANCIAL PERFORMANCE In order to confirm the appropriateness of the above rate recommendations, the financial model projects the impact of these rates on the growing customer base for a five-year period. Figure 4-1 provides the projected operating expenses as compared to the operating revenues. Some years result in a surplus and some in a deficit, but the goal is to average out the five-year anticipated funding needs and maintain fund City of Fayetteville 4-5 [SID 0 0 N S U LTFINTS 4. CONCLUSIONS AND RECOMMENDATIONS reserves to cover deficit years while following the planned vehicle replacement, Master Plan expansion and Capital Improvement Plan. The projected billing determinants (i.e., tonnages and customer counts) associated with this operating performance are detailed in Exhibit 1. Growth in tonnage and in the customer, base is based on two percent annual increases. Figure 4-1 Projected Operating Results $15 $15 $14 C $14 .......— C 0 $13 $13 � $12 $12 $11 2019 2020 2021 2022 2023 � Projected Rate Revenue Projected Operating Expenses Figure 4-2 shows the effect on the operating reserves for the five-year period. As shown, the minimum reserve target is maintained over the next five years. It should be noted that the financial model prepared for this study integrated a 10 -year horizon to reduce the potential for rate shocks in the out -years. This 10 -year view, although not shown here, identifies heightened capital expenditures in years 6 through 8, and consequently the near-term rate recommendation is slightly higher than had the 10 -year view not been considered. In the professional opinion of MSW Consultants, the five-year path represents a fiscally responsible, revenue sufficient path that minimizes the potential for a shock in future years and moves towards rate equitability. �CONSULTFINTS 4-6 City of Fayetteville F CONCLUSIONS AND RECOMMENDATIONS Figure 4-2 Projected Operating Reserves 2019 2020 2021 2022 2023 � Operating Reserve Operating Reserve Target With the recommended rate path, the projected operating results for the next five years is reflected in detail in Exhibit 2. The associated projected five-year Cash Flow is provided in Exhibit 3. 4.4 OTHER RECOMMENDATIONS In addition to the recommended rate path presented above, MSW Consultants snakes the following supplementary recommendations: CPI increases should be associated with all customer classes and rates. It is recommended that the ordinance be amended so that the CPI increase affects all types of service, since the current ordinance only allows the CPI increase to affect residential rates. The City should test the proposed rates in their billing system prior to implementation to evaluate the projected billings compared to the projected rate revenue presented in this study for reasonableness. The City should also tabulate actual billing determinants for the new services that are scheduled to expand in the coming years, and replace the estimates used in this financial model with actual customer counts. The City should update the revenue sufficiency analysis portion of this study each year to ensure projected revenue is sufficient to fund projected expenses going forward as assumptions made during this analysis may change and have a material impact upon the analysis. As the region has experienced rapid growth, this could impact both expenses and revenue substantially. The City should update the cost of service analysis portion of this study every three to five years, or upon implementation of any major changes to the collection system or facilities owned to ensure costs are recovered consistent with cost of service principles and customer characteristics. 4.5 CONCLUSIONS MSW Consultants has constructed a detailed financial model to project the performance of the City of Fayetteville's recycling and waste management system through 2023. The operating revenues and operating expenses for the forecast period were developed by, and/or in consultation with, City staff and are based upon reasonable projections. Table 4-10 provides an overview of the recommended rate impact by service sector. City of Fayetteville 4-7 CO N S U LrF=1 NTS 4. CONCLUSIONS AND RECOMMENDATIONS Table 4-10 Overall Rate Impact by Service Sector Current Rate Recommended Rate Service Revenue Revenue % Increase Single Family Residential $4,600,834 Multi -Family Residential $1,544,641 Commercial Refuse $2,842,022 Commercial Recycling $237,876 Drop -box Containers $1,267,628 Scale/Tip Fees $906,295 Total for 2019 $11,458,196 $4,832,347 5.0% $1,515,913 -1.9% $3,369,927 18.6% $195,452 -17.8% $1,436,785 13.3% $1,085,936 19.8% $12,498,206 9.1% MSW Consultants is of the opinion that the financial projections and recommended rates in this section will enable the City to meet its obligations with regard to: Operating expenses; Non-operating expenses; ♦ Capital project expenses; ♦ Vehicle replacement; and Key financial policies, including: • Maintenance of operating reserve balances to cover at least 60 days; and • Cash funding of all future financial obligations for operation of the system. The City of Fayetteville should be well positioned both operationally and financially to continue providing critical solid waste services to the community, including the implementation of its Master Plan. ®CONSUU_rMNTS 4.8 City of Fayetteville Exhibit 1 Projected Billing Determinants Service Category Single Family Residential 1x/wk Refuse 32 Gallon and Recycling Bins (per Month) - City 1x/wk Refuse 64 Gallon and Recycling Bins (per Month) - City 1x/wk Refuse 96 Gallon and Recycling Bins (per Month) - City 1x/wk Yard Waste (per Month) 1x/yr Bulk Waste - Curb Pickup or Bring 5 items to Transfer Station Additional Bulky Pickups Curbside (per Occurrence) Extra Bag Charge (per Occurrence) Cart Exchange to Larger Size (per Occurrence) Extra Recycling Bin (Purchase) Newspaper Bag (Purchase) Event Boxes (Purchase) Freon Appliance (Per Unit) 1x/wk Refuse 32 Gallon (per Month) - Outer Area 1x/wk Refuse 64 Gallon (per Month) - Outer Area 1x/wk Refuse 96 Gallon (per Month) - Outer Area Multi -Family Residential Refuse Service per Dwelling Unit (per Month) Recycling Battleship Service per Dwelling Unit (per Month) Subscription Curbside Recycling per Dwelling Unit (per Month) Growth Refuse Service with No Feasible Recycling Refuse Service with Curbside Recycling Refuse Service with Battleship Recycling 2019 2020 2021 2022 2023 6,209 6,333 6,460 6,589 6,721 12,978 13,238 13,502 13,772 14,048 5,382 5,490 5,599 5,711 5,826 0 0 0 0 0 1,438 1,467 1,496 1,526 1,557 48 49 50 51 52 19,540 19,931 20,329 20,736 21,151 290 296 302 308 314 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20 20 21 21 22 85 87 88 90 92 176 180 183 187 191 73 74 76 77 79 12,977 13,237 13,501 13,771 14,047 2,468 2,517 2,568 2,619 2,671 0 312 318 325 331 13 13 14 14 14 6,307 6,433 6,562 6,693 6,827 3,123 3,185 3,249 3,314 3,380 3,547 3,618 3,690 3,764 3,839 Commercial Refuse Containers 95 Gallon Cart 1x/wk (per Month) 714 728 743 758 773 95 Gallon Cart 2x/wk (per Month) 22 22 23 23 24 95 Gallon Cart 3x/wk (per Month) 9 9 9 10 10 95 Gallon Cart 4x/wk (per Month) 5 5 5 5 5 95 Gallon Cart 5x/wk (per Month) 0 0 0 0 0 95 Gallon Cart Extra Collection 0 0 0 0 0 2 CY 1x/wk (per Month) 259 264 269 275 280 2 CY 2x/wk (per Month) 22 22 23 23 24 2 CY 3x/wk (per Month) 8 8 8 8 9 2 CY 4x/wk (per Month) 3 3 3 3 3 2 CY 5x/wk (per Month) 0 0 0 0 0 2 CY 6x/wk (per Month) 0 0 0 0 0 2 CY Extra Collection 164 167 171 174 178 2 CY Container Rental (per Month) 204 208 212 216 221 4 CY 1x/wk (per Month) 224 228 233 238 242 4 CY 2x/wk (per Month) 153 156 159 162 166 City of Fayetteville Page 1 of 4 ®CONSuCrFINTS Exhibit 1 Projected Billing Determinants Service 2019 2020 2021 2022 2023 4 CY 3x/wk (per Month) 40 41 42 42 43 4 CY 4x/wk (per Month) 4 4 4 4 4 4 CY 5x/wk (per Month) 5 5 5 5 5 4 CY 6x/wk (per Month) 1 1 1 1 1 4 CY Extra Collection 0 0 0 0 0 4 CY Container Rental (per Month) 407 415 423 432 441 6 CY 1x/wk (per Month) 182 186 189 193 197 6 CY 2x/wk (per Month) 190 194 198 202 206 6 CY 3x/wk (per Month) 40 41 42 42 43 6 CY 4x/wk (per Month) 4 4 4 4 4 6 CY 5x/wk (per Month) 5 5 5 5 5 6 CY 6x/wk (per Month) 1 1 1 1 1 6 CY Extra Collection 30 31 31 32 32 6 CY Container Rental (per Month) 340 347 354 361 368 8 CY 1x/wk (per Month) 41 42 43 44 44 8 CY 2x/wk (per Month) 83 85 86 88 90 8 CY 3x/wk (per Month) 28 29 29 30 30 8 CY 4x/wk (per Month) 10 10 10 11 11 8 CY 5x/wk (per Month) 14 14 15 15 15 8 CY 6x/wk (per Month) 15 15 16 16 16 8 CY Extra Collection 15 15 16 16 16 8 CY Container Rental (per Month) 220 224 229 233 238 4 CY 1x/wk Compacted (per Month) 1 1 1 1 1 4 CY 2x/wk Compacted (per Month) 0 0 0 0 0 4 CY 3x/wk Compacted (per Month) 0 0 0 0 0 4 CY 4x/wk Compacted (per Month) 0 0 0 0 0 4 CY 5x/wk Compacted (per Month) 0 0 0 0 0 6 CY 1x/wk Compacted (per Month) 1 1 1 1 1 6 CY 2x/wk Compacted (per Month) 0 0 0 0 0 6 CY 3x/wk Compacted (per Month) 10 10 10 11 11 6 CY 4x/wk Compacted (per Month) 1 1 1 1 1 6 CY 5x/wk Compacted (per Month) 1 1 1 1 1 Commercial Recycling Containers Cardboard 4 CY 1x/wk (per Month) 65 66 68 69 70 Cardboard 4 CY 2x/wk (per Month) 10 10 10 11 11 Cardboard 4 CY 3x/wk (per Month) 18 18 19 19 19 Cardboard 4 CY 4x/wk (per Month) 3 3 3 3 3 Cardboard 4 CY 5x/wk (per Month) 2 2 2 2 2 Cardboard 6 CY 1x/wk (per Month) 41 42 43 44 44 Cardboard 6 CY 2x/wk (per Month) 8 8 8 8 9 Cardboard 6 CY 3x/wk (per Month) 9 9 9 10 10 Cardboard 6 CY 4x/wk (per Month) 1 1 1 1 1 Cardboard 6 CY 5x/wk (per Month) 2 2 2 2 2 Cardboard 8 CY 1x/wk (per Month) 5 5 5 5 5 City of Fayetteville Page 2 of 4 ®OM SULTFINTS Exhibit 1 Projected Billing Determinants Service Category 2019 2020 2021 2022 2023 Cardboard 8 CY 2x/wk (per Month) 9 9 9 10 10 Cardboard 8 CY 3x/wk (per Month) 4 4 4 4 4 Cardboard 8 CY 4x/wk (per Month) 2 2 2 2 2 Cardboard 8 CY 5x/wk (per Month) 4 4 4 4 4 Cardboard 4 CY 1x/wk Compacted (per Month) 0 0 0 0 0 Cardboard 4 CY 2x/wk Compacted (per Month) 1 1 1 1 1 Cardboard 4 CY 3x/wk Compacted (per Month) 0 0 0 0 0 Cardboard 6 CY 1x/wk Compacted (per Month) 0 0 0 0 0 Cardboard 6 CY 2x/wk Compacted (per Month) 0 0 0 0 0 Cardboard 6 CY 3x/wk Compacted (per Month) 4 4 4 4 4 Glass 95 Gallon Cart 1x/wk (per Cart, per Month) 83 85 86 88 90 Paper 4 CY 1x/wk (per Month) 30 31 31 32 32 Paper 4 CY Container Rental (per Month) 30 31 31 32 32 Recycling (5) 18 Gallon Bins 1x/wk (per Month) 371 378 386 394 402 Food Waste Pilot 4 CY 3x/wk (per Container per Month) 11 11 11 12 12 Food Waste Pilot 2 CY 3x/wk (per Container per Month) 8 8 8 8 9 Food Waste Pilot Cart 3x/wk (per Container per Month) 151 154 157 160 163 Temporary Containers Temporary 6 CY 7 Day Rental Delivery, Pull, and Disposal (per Container) 380 388 395 403 411 Lease Over 10 Days (per Day) 0 0 0 0 0 Monthly Lease (per Month) 0 0 0 0 0 Extra Dump Excluding Disposal (per Dump) 0 0 0 0 0 Drop -box Containers 20 CY Pull Charge (per Pull) 328 335 341 348 355 30 CY Pull Charge (per Pull) 1,487 1,517 1,547 1,578 1,610 40 CY Pull Charge (per Pull) 1,265 1,290 1,316 1,342 1,369 Contractor Rate Pull Charge (per Pull) 0 0 0 0 0 Delivery Fee (per Occurrence) 424 432 441 450 459 Cardboard Only 20 CY Pull Charge (per Pull) 0 0 0 0 0 Cardboard Only 30 CY Pull Charge (per Pull) 17 17 18 18 18 Cardboard Only 40 CY Pull Charge (per Pull) 0 0 0 0 0 Disposal (per Ton) 13,770 14,045 14,326 14,613 14,905 Daily Rental Over 30 Days (per Day) 0 0 0 0 0 Monthly Rental (per Rental) 0 0 0 0 0 Relocation (per Trip) 0 0 0 0 0 Recycling Roll -off Disposal (per Ton) 237 242 247 252 257 City of Fayetteville Page 3 of 4 ®CONSIJLTFINTS Exhibit 1 Projected Billing Determinants Service Category 2019 2020 2021 2022 2023 New Rates/Service Costs Recycling Drop-off Pull Charge (per Pull) 853 870 887 905 923 Recycling Drop-off Disposal (per Ton) 901 919 937 956 975 Scale/Tip Fees Disposal Minimum (per Load) 152 155 158 161 165 Disposal (Resident) (per Ton) 9,433 9,622 9,814 10,010 10,211 Disposal (Out of Town) (per Ton) 9,835 10,032 10,232 10,437 10,646 Compact Pickup Truck (per Load) 0 0 0 0 0 Full Size Pickup Truck (per Load) 0 0 0 0 0 Trailers Up to 14 FT (per Load) 0 0 0 0 0 Trailers Greater Than 14 FT (per Load) 0 0 0 0 0 Composting Facility Mulch Sales (Free when excessive supply on hand) 644 657 670 683 697 2 CY Compost Scoop 1,312 1,338 1,365 1,392 1,420 50 LB Compost Bags 302 308 314 320 327 City of Fayetteville Page 4 of 4 ®CONSULTFIN- S Exhibit 2 - Projected Operating Results Rate Option Recommended Year 2019 2020 2021 2022 2023 Projected Rate Revenue $12,498,206 $12,738,418 $12,994,386 $13,257,989 $13,509,315 Projected Operating Expenses Salaries/Wages FT, Regular $2,613,200 $2,665,464 $2,718,774 $2,773,149 $2,828,612 Overtime General $58,600 $59,772 $60,967 $62,187 $63,431 Accruals General $0 $0 $0 $0 $0 Accruals ST/LT $0 $0 $0 $0 $0 Payroll Taxes FICA $163,009 $166,269 $169,595 $172,987 $176,446 Payroll Taxes Medicare $38,821 $39,598 $40,390 $41,197 $42,021 Contingency General $1,655 $1,689 $1,722 $1,757 $1,792 Emp Insurance Health $477,010 $486,550 $496,281 $506,207 $516,331 Emp Insurance LTD $4,898 $4,996 $5,096 $5,198 $5,302 Emp Insurance ADD $349 $356 $363 $370 $378 Emp Insurance Life $8,371 $8,539 $8,709 $8,884 $9,061 Pension Retirement Savings $290,227 $296,031 $301,952 $307,991 $314,151 Workers Compensation Insurance $102,898 $104,956 $107,055 $109,196 $111,380 Personnel Other Contra $170,231 $173,635 $177,108 $180,650 $184,263 Extra Services Personnel $25,500 $26,010 $26,530 $27,061 $27,602 Supplies Office/Printing $14,497 $14,787 $15,083 $15,385 $15,692 Supplies Copies/Lease $2,448 $2,497 $2,547 $2,598 $2,650 Cleaning Supplies: $7,963 $8,122 $8,285 $8,451 $8,620 Chemicals: $1,530 $1,561 $1,592 $1,624 $1,656 Software: $663 $676 $690 $704 $718 Minor Equipment: $67,885 $69,243 $70,628 $72,040 $73,481 Fuel Unleaded/Diesel $536,606 $547,338 $558,285 $569,450 $580,839 Safety Devices : $17,534 $17,884 $18,242 $18,607 $18,979 Public Notification : $5,100 $5,202 $5,306 $5,412 $5,520 Uniforms/Personal Equipment $52,328 $53,375 $54,442 $55,531 $56,642 Publications & Dues : $60,776 $61,991 $63,231 $64,496 $65,786 Travel & Training: $30,467 $31,077 $31,698 $32,332 $32,979 Travel & Training Advances $0 $0 $0 $0 $0 Postage Postage $164,111 $167,393 $170,741 $174,156 $177,639 Business Meals $510 $520 $531 $541 $552 Audit Expense: $4,182 $4,266 $4,351 $4,438 $4,527 Rental Equipment $1,836 $1,873 $1,910 $1,948 $1,987 Lease Software $7,548 $7,699 $7,853 $8,010 $8,170 Utilities Other/Rebates/Legacy $0 $0 $0 $0 $0 Utilities Telephone $22,088 $22,530 $22,980 $23,440 $23,909 Utilities AEP Electric $45,390 $46,298 $47,224 $48,168 $49,132 Utilities Fayetteville Water/Sewer $8,466 $8,635 $8,808 $8,984 $9,164 Utilities Arkansas Western Gas/Source Gas $4,896 $4,994 $5,094 $5,196 $5,300 Utilities Ozarks Electric $612 $624 $637 $649 $662 Insurance Vehicles/Buildings $8,497 $8,667 $8,840 $9,017 $9,197 Insurance Self (City Vehicles) $2,346 $2,393 $2,441 $2,490 $2,539 Insurance Self (Third Party Damage) $1 $1 $1 $1 $1 Insurance Self (Non -Vehicle Damage) $2,244 $2,289 $2,335 $2,381 $2,429 Professional Services : $1,836 $1,873 $1,910 $1,948 $1,987 Contract Services : $716,142 $730,465 $745,074 $759,976 $775,175 Bad Debt Expense $35,700 $36,414 $37,142 $37,885 $38,643 Bank Charges Credit Card $61,200 $62,424 $63,672 $64,946 $66,245 In Lieu Of Taxes Solid Waste $333,336 $340,003 $346,803 $353,739 $360,814 Recognition Employee $1,224 $1,248 $1,273 $1,299 $1,325 Motorpool Charges Maintenance $615,242 $627,546 $640,097 $652,899 $665,957 Motorpool Charges Shop Overhead $200,600 $204,612 $208,705 $212,879 $217,136 City of Fayetteville Page 1 of 2 =]CONSLILTgNT� Exhibit 2 - Projected Operating Results Rate Option Recommended Year 2019 2020 2021 2022 2023 Motorpool Charges Shop Overhead Insurance $31,746 $32,381 $33,029 $33,690 $34,363 Collection Expense $255 $260 $265 $271 $276 Safety Program Safety Program $306 $312 $318 $325 $331 Sales Tax Inventory Items $7,455 $7,604 $7,756 $7,911 $8,070 Cost Allocation: $719,100 $733,482 $748,152 $763,115 $778,377 Building & Grounds Maintenance $51,000 $52,020 $53,060 $54,122 $55,204 Equipment Maint Office Machine $2,040 $2,081 $2,122 $2,165 $2,208 Radio Maintenance Radio Maintenance $7,238 $7,383 $7,530 $7,681 $7,835 Vehicle & Machine Maintenance $15,613 $15,925 $16,244 $16,569 $16,900 Bank Service Charge Bank Service Charge $204 $208 $212 $216 $221 Salaries/Wages Bank Payout $0 $0 $0 $0 $0 Signs Signs $5,304 $5,410 $5,518 $5,629 $5,741 Container Maint Supplies : $4,386 $4,474 $4,563 $4,654 $4,748 Containers Containers $240,211 $245,015 $249,916 $254,914 $260,012 Solid Waste Disposal Solid Waste Disposal $2,255,363 $2,300,470 $2,346,479 $2,393,409 $2,441,277 Solid Waste Collection Supplies $19,125 $19,508 $19,898 $20,296 $20,702 Software Maintenance $2,040 $2,081 $2,122 $2,165 $2,208 Promotionals Activities $136,476 $139,206 $141,990 $144,829 $147,726 Small Equipment Maint Small Equipment Maint $6,120 $6,242 $6,367 $6,495 $6,624 CIP $444,100 $625,000 $84,000 $420,000 $0 Equipment Replacement $1,976,667 $1,922,997 $3,604,656 $1,008,894 $2,128,144 Organics Collection Driver $48,235 $49,200 $50,184 $51,187 $52,211 Apartment Recycling Driver $48,235 $49,200 $50,184 $51,187 $52,211 Apartment Recycling Driver $48,235 $49,200 $50,184 $51,187 $52,211 Curb Recycling Driver $48,235 $49,200 $50,184 $51,187 $52,211 Curb Recycling Driver $48,235 $49,200 $50,184 $51,187 $52,211 Financial Coordinator (Personnel Other Contra) $71,453 $72,882 $74,340 $75,826 $77,343 HR Recruiter (Personnel Other Contra) $30,000 $30,600 $31,212 $31,836 $32,473 Educator $48,235 $49,200 $50,184 $51,187 $52,211 Microcomputers/Printer Replacements $1,000 $8,000 $8,000 $8,000 $0 Organic Carts (10,112) $6,800 $0 $7,000 $7,000 $0 Curb Recycling Bins $7,000 $0 $0 $0 $0 Additional Motorpool Charges $186,000 $186,000 $186,000 $186,000 $186,000 Residential Refuse Driver 2023 $0 $0 $0 $0 $54,289 Commercial Refuse Driver 2023 $0 $0 $0 $0 $54,289 Additional Motorpool Charges 2023 $0 $0 $0 $0 $55,204 Residential Recycling Driver 2024 $0 $0 $0 $0 $0 Additional Motorpool Charges 2024 $0 $0 $0 $0 $0 Roll -off Driver 2025 $0 $0 $0 $0 $0 Additional Motorpool Charges 2025 $0 $0 $0 $0 $0 Residential Refuse Driver 2028 $0 $0 $0 $0 $0 Commercial Refuse Driver 2028 $0 $0 $0 $0 $0 Residential Recycling Driver 2028 $0 $0 $0 $0 $0 Additional Motorpool Charges 2028 $0 $0 $0 $0 $0 Surplus (Deficit) ($1,008,779.83) ($1,106,705.97) ($2,220,459.24) $76,401.78 ($751,338.31) City of Fayetteville Page 2 of 2 ff=CONSULTFINT� z d LO � ao m yj rn CQ Otic z m Ln N rn lin m 0) c�0 Oti ti rn 0 M Op cti-I 00 M al 1� O r -I N L � L7 O LC C�� ri O 0 rl ti N -U O Ln C� jCLjV1j CV CO ri m r-1 N .64 } rmI cmI O ti N N I` Cil00 LO 00C O O C) �� cy) 00 L N i j LO C4 LO M f-- CF) dj W0) N 0 00 p o) �N r,- O LOp C14 TH CVNNm��ri b4 r- 00 O N N m 00 LO (Y) O 000 Cn N N O (Y) O p CV O p N W 00 N N N L IOC) p LOC') � (.0 Cm-i p 00 r -I r -I CV io r�I cNI bNR} 000 m Ln r-1 (h 00 W (p 0) 00 ti 000 � N 00 Cn ti r -I 00 0 m LLJ CV ti chi 0 N I` ti C� (til N CN rl c1r) rl N 40 rmI cNI 4ad (Lp LO O LO (C c-1O O � `N N N Oti N pp N 0) 00 6' 0 NN m ujmoo o m0O0� p N 00 It O00 p CV r -I r -i ( V 40 � El} �4 cN-I rN-I o c L] C O "a bi0 O m N N6 :3x > N (LL U fp H C N W N N N N bnN C J i c0 N ' (6 N ? i N + C N � O N N d' O N . 4- En O� Q) Q m N U a O } un 6 a o U bn W Q >, (') Q N}>- W a O O O N N O Li O +O+ V a) N CLN i (p 'O '� Q L i N CL .0 q0 N Q N > -6 bA N ,� -� U w = W- O r i a �- CL 7 (n O a) m x w N CC C w (p Cl I— O U Q x w U APPENDIX A PRESENTATION December 18, 2018 City Council Presentation City of Fayetteville u= GQwSL.ILTmNTS This page intentionally left blank. C O N S U LTFI NTS City of Fayetteville City of Fayetteville Fayetteville Trash & Recycling Cost of Service PRESENTED TO FAYETTEVILLE CITY COUNCIL DECEMBER 18, 2018 �=DtISLJLMN ............ MSW Overview ............... ----- -- _.._....._-..�... -- -- - _ • Cost -of -Service and Rate SI • Collection Optimization • Solid Waste Management Plans • Waste Composition Studies I • Collection, Disposal and Recycling Procurement Services • Recycling &. Composting Program CONSUL-rR NTS Development Assistance www. mswconsul tants.rom MSW Consultants City of Fayetteville Project History s 20 years ago: Last comprehensive solid waste rate study • Feb 201: Solid Waste Diversion, Reduction and Recycling Master Plan adopted Organics Collection pilot program o Commercial Glass pilot program • Oct 2017: RFP for Recycling and Trash Collection Rate Study MSW Consultants 2 City of Fayetteville Historical Operating Performance .... - . ........ -- --------- $16 -- - $16 f1� �•� f10 fB i f6 N S] 10 Ad -I Actual Actual Eallmeta0 Budget Sub..... 7015 7016 7017 7018 7019 —Bewnu•—Ocmetng EApenaea We GpllAl Limited ability to cover the cost of program expansion, vehicle replacement and capital improvements MSW Consultants City of Fayetteville Project Methodology • Data Request and Review Kick-off Meeting and Interviews • Operations Field Observations/Asset Assessment • Cost -of -Service and Rate Study Bottom -Up Modeling of Full Cost by Service Test Year Revenue Sufficiency Recommended Rate Option Collection System Audit and Observation J Residential Trash 88% selout observed Residential Recycling 38-64% seloul for r(mt:, segments observed MSW Consultants City of Fayetteville Cost -of -Service and Rate Model Trash & Recycling System Cost Centers Management & Administration Collection Facilities Automated Refuse Compost Facility Curbside Recycling Transfer Station Curbside Yard Waste Recycling Center Bulky Collection Commercial Container Refuse Commercial Container OCC Recycling Commercial Paper Recycling Dropbox Collection Apartment (Battleship) Recycling Food Waste Pilot Glass Pilot Recycling Drop -Off MSW Consultants City of Fayetteville 2019 Test Year Full Cost i7 --------- - --------------- - - - - — ----- -- . Management t& Administration, Facilities, S1,791,866 .� 54,402,388 No direct customers, must be recovered through rates Collection, $7,313,731 1 arm► Annual Rmnua Need _PocsycUngt nuc Rgtr Rine uc Nerd $13,507,985 -$673,040 $12,834,945 MSW Consultants City of Fayetteville Rate Considerations Transfer Station Tip Fees: Same for all customers or tiered for in and out of City? Single Family: Maintain Pay -As -You -Throw • Multi -family Rates: All -Inclusive or separate trash j & recycling? • Commercial: All -Inclusive or separate trash & recycling? • Subsidization Across Services: Reduce the level of subsidization where identified, but do so gradually to minimize rate shock Overview of Rate Recommendations (Consultant -City Collaboration) • Most rates adjusted but not reconfigured Adjusbnents: Single family residential collection, commercial collection, drop -box collection, tip fees New/reconfigured Rates: Multi -family collection, commercial food waste pilot, commercial glass pilot ■ Disposal Tip Fees: Higher for non -city wastes • Multi -family till -inclusive rates (r rate covers trash and recycling collection) Expanded provision of recycling service • Commercial Trash rates are set at a premium to cover some recycling cost Recycling; and organics rates are below cost to increase the incentive to recycle MSW Consultants City of Fayetteville Transfer Station --- --- —_. -. -.... ---_..._..- 5 --- .................. Service Current Rates Full Cost Rales Recommended Rates Increase City -Generated Waste Disposal (per Ton) $46.80 $50.74 $52.00 11.1% Out -of -City Waste Disposal (per Ton) $46.80 $50,74 $60.00 28.2% City rate close to full cost • Out -of -City rate includes premium for use of City resources Compost Facility Service Current Rates _Recommended Compact Pickup Truck (per Load) $5.00 $5.25 Full Size Pickup Truck (per Load) $8.00 $8.40 Trailers Up to 14 FT (per Load) $10.00 $10.50 Trailers Greater Than 14 FT Luer Load) $15.00 $15.75 5% increases MSW Consultants 8 City of Fayetteville Single -Family Residential Collection Single Family Rate Benchmarks Service Current Rates Full Cost Rate Recommended_ Rate lx/wk Refuse 32 Gallon and Recycling Bins (per Month)- City $9.68 $17.32 $30.16 lx/wk Refuse 64 Gallon and Recycling Bins (per Month) - City $14.78 $18.60 $15.52 lx/wk Refuse 96 Gallon and Recycling Bins (per Month)- City $20.98 $19.89 $22.03 Additional Bulky Pickups Curbside (per Occurrence) $45.00 $38.25 $55.00 Extra Bag Charge (per Occurrence) $6.40 $0.97 $6.72 1x/wk Refuse 32 Gallon (per Month) - Outer Area $14.54 $17.32 $15.25 Ix/wk Refuse 64 Gallon (per Month) - Outer Area $22.17 $18.60 $23.28 15�w Reluse JG Gn Ilan fpor Manlnl • Outer Area $3L4a MISS $3104 5% Single -Family Rate Increase MSW Consultants Single Family Rate Benchmarks PAYT Rate: 32 -gal Refuse Fayetteville $10.16 N/A Springdale N/A PAYT Rate: 64 -gal Refuse $15.52 $16.17 N/A PAYT Rate: 96 -gal Refuse $22.03 $20.35 $15.24 Refuse Frequency Weekly Weekly Weekly Recycling Frequency Weekly Weekly Every -other -week MSW Consultants City of Fayetteville Multi -Family Residential Collection _. ..................-- Current Full Cost Recommended Service Rates Rate Rate Refuse Service with No Recycling $9.72 $4.91 $9.72 Refuse Service with Battleship Recycling $10.69 $6.17 $9.72 Refuse Service with Curbside Recycling N/A $9.38 $9.72 City is expanding recycling access, with no rate change Commercial Trash Collection Current Rates _ Frequency... .... ..-..__._ ., Size 1 2 3 4 5 6 2 $32.76 $65.52 $92.28 $131.04 $163.80 $196.56 4 $65.52 $131.04 $196.56 $262.08 $327.60 $393.12 6 $98.28 $196.56 $294.84 $393.12 $491.40 $589.68 8 $131.04 $262.08 $393.12 $524.16 $655.20 $786.24 Current rates are: • Low • Out of balance, especially for small containers Full Cost _ Frequency size 1~ 2 3 4 5 6 2 $80.33 $160.66 $240.99 $321.32 $401.64 $481.97 4 $100.23 $200.45 $300.68 $400.90 $501.13 $601.36 6 $120.12 $240.25 $360.37 $480.49 $600.62 $720.74 8 $140.02 $280.04 $420.06 $560.08 $700.10 $840.12 MSW Consultants 10 City of Fayetteville Commercial Trash (continued) ----- - - - Recommended Frequency _ Size 1 2 3 4 5 6 2 $47.50 $95.00 $142.50 $190.00 $237.50 $285.00 4 $88.45 $176.90 $265.35 $353.80 $442.25 $530.70 6 $115.00 $230.00 $345.00 $460.00 $575.00 $690.00 8 $144.00 $268.00 $432.00 $576.00 $720.00 $864.00 15.8% overall increase • Higher increases for smaller containers to better align with full cost MSW Consultants 11 Commercial _.._ ..... .... _._..... _.�.._.._..- Recycling Collection -- Collection (Material Mechanism _Service Frequency Monthly Rate Rate Impact cardboard Dumpsters varies 25% of Trash Rates Down Mixed Paper Dumpsters varies 25% of Trash Rates Down Food Waste (New Rate) Dumpsters or Cart 3 times/week 25% of Trash Rates N/A Slass (New Rate) Dumpsters or Cart 1 time/week $5.00 N/A Small Business Five 18 -gal Bins 1 time/week $5.00 N/A -ommingled MSW Consultants 11 City of Fayetteville Takeaways • Revenue will be short of full costs in 2019 by approximately 12.0 Slightly offset by non -rate revenues (i.e., mulch/compost sales) • Recommended system rate increase of 9.1 Operating reserves cover the gap CPT increase likely needed in 2021 • Master Plan implementation under way Expands Organics and Glass Collection from CLIA-ent pilots Expanded Apartment Recycling New rates have been developed Encounages greater diversion MSW Consultants 12 Drop -Box Collection Slze CurrentPull Full Cost per Recommended Current Rate Full Cost per Recommended Meterha .ICYI. F418 Pull Pull Fee erTon Ton Rate perTon Trash 20 $220.00 $212.67 $225.00 $38.25 $50.74 $52.00 30 $230.00 $212.67 $225.00 $38.25 $50.74 $52.00 40 $240.00 $212.67 $225.00 $38.25 $50.74 $52.00 • Minimal net impact on pull charges (-6% to 2%) 36% disposal cost increase in line with all City customers Takeaways • Revenue will be short of full costs in 2019 by approximately 12.0 Slightly offset by non -rate revenues (i.e., mulch/compost sales) • Recommended system rate increase of 9.1 Operating reserves cover the gap CPT increase likely needed in 2021 • Master Plan implementation under way Expands Organics and Glass Collection from CLIA-ent pilots Expanded Apartment Recycling New rates have been developed Encounages greater diversion MSW Consultants 12 City of Fayetteville Rate Impact By Customer Class Service R om& MnnthlY Rate Impact Single Family $.74 Increase Refuse: No Change Multi -Family Residential Recycling: $.97 Decrease Commercial Trash & Recycling (combined) $11 Increase MSW Consultants 13 Recommended Rates N Summary Impact -�.._.... W..,__..,....._..,._.....__ _�.-- 25 - --......__W .......... ..__..._M.-. Current Rate Recommended Rate Current Service Revenue Revenue '% Increase Single Family $4,600,834 $4,832,347 5.0% Multi -Family Residential (includes Drop-offs) $1,544,641 $1,515,913 -1.9% Commercial Trash & Recycling (combined) $3,079,898 $3,565,379 15.8% Temporary Containers $58,900 $61,845 5.0% Drop -Box $1,267,628 $1,436,785 13.3% Scale/Tip Fees $906,295 $1.085.936 19.8% Total for 2019 $11,458,196 $12,498,206 9.1% 9.1% average Increase vs. the 12.0% System Revenue Sufficiency 4 Adequate Cash Flow due to Fund Reserves and timing of future needs Rate Impact By Customer Class Service R om& MnnthlY Rate Impact Single Family $.74 Increase Refuse: No Change Multi -Family Residential Recycling: $.97 Decrease Commercial Trash & Recycling (combined) $11 Increase MSW Consultants 13 City of Fayetteville >n�o� r�.00cooa — ...--- � • f4000.0CF ..� so 209 ZWO U= :0u 20z3 Opersdhq Rmavv. QywdlLq Rihn9a Tap$ saooa000 ss,000.OaO faoaavoO szooq.ow nooaooa — -- .v:7 .'a]a 202i 70"1 ?OJ Future Rate Increases 8 • CPI -based increases should be sufficient to maintain revenue sufficiency Current ordinance limits CPI increases to residential rates only Change ordinance to allow across-the-board CPI increases Likely CPI increase needed in 2 to 3 years • Monitor financial performance Update this study in 4-5 years or if additional program changes are implemented MSW Consultants 14 City of Fayetteville Next Steps . Ordinance amendments Outreach to customers 90 -day delayed implementation Questions __....... __............. - -- - - — so .......... JOIIN CULBERTSON, PRINCIPAL 4()7-385-8951 .I CU I.BTRTSON Ci)Mq SWCONSIf L'T ANTS.COM MSW Consultants 15 CONSULTFiNTS 800-679-9220 1 mswconsultants.com NORTHWEST ARKANSAS Democrat Ojazeu"e equivalent commercial container P.O.Erg 1607,FAYETT EVi11E 41Z,72702•-79•'42'1770•SAX.479.065-1118.IVI,VteiViaDu it) trash service,except that the Recycling and Trash Collection Division may waive that fee for all I 9ustomers. AFFIDAVIT OF PUBLICATION (5-galloncartontainerre (S) Container rental is a flat fee per month.Container I Cathy Staggs, do solemnly swear that I am the Accounting Manager of the Northwest Rental/Dumpster Lease Fee Schedule Container Size(Cubic Arkansas Democrat- Gazette, printed and published in Washington and Benton Yards) Monthly Rate County, Arkansas, and of bona fide circulation, that from my own personal knowledge (EoFailityUse of Composting and reference to the files of said publication, the advertisement of: Businesses,including commercial landscapers and tree trimmers,and nonresidents that bring brush to the Ordinance:6138 residential garbage cart size,the city's composting facility for CITY OF FAYETTEVILLE File Number:2018-0707 customer shall be assessed a$25.00 disposal will be charged as follows: RECYCLING AND TRASH trip fee.No fee shall be assessed Composting User Fee Schedule Size Ord. 6138 COLLECTION RATE for customers wishing to exchange Rate AMENDMENTS: to a smaller cart. Compact pickup trucks AN ORDINANCE TO AMEND (4) The charge for an $5.25 Full size pickup §50.40 RATES FOR extra bag or an over-full cart shall trucks $8.40 Trailers up to SERVICES OF THE be$6.72. 14 feet long$10.50 Was inserted in the Regular Edition on: FAYETTEVILLE CITY CODE (C) Residential Multi- Trailers greater than 14 feet long TO ALIGN THE CITY'S family Service.Trash shall be $15.75 January 10, 2019 RECYCLING AND TRASH collected from residential multi- PASSED and APPROVED on COLLECTION RATES WITH family customers one time each 1/3/2019 THE RECENT RATE STUDY week at a rate of$9.72 per dwelling Approved: Publication Charges $ 265.20 WHEREAS,the Recycling and unit per month unless the owner of Lioneld Jordan,Mayor g Trash Collection Rate Study the multi-family complex requests Attest: completed by MSW Consultants greater volume/frequency of Sondra E.Smith,City Clerk made several recommendations service than the minimum required Treasurer based ly ois a cost f service service asg and determined rof the 74805568 ---5-\-161SDanalysis and the goals the Recycling and Trash Collection Cat y Stagg City's 2017 Solid Waste Manager.When requests for Reduction,Diversion,and greater volume/frequency of Recycling Master Plan which are service by an owner are made,rates Subscribed and sworn to before me reflected in the staff- shall be determined by the •This l(A, day of 2019. recommended amendments to prevailing commercial service rate the rates for recycling and trash divided by the number of dwelling collection services below. units.Multi-family trash service NOW,THEREFORE,BE IT shall include recycling,subject to ORDAINED BY THE CITY availability as determined by the COUNCIL OF THE CITY OF Recycling and Trash Collections ,06.1 ` FAYETTEVILLE, Director. j�./�.V//tvuvl ARKANSAS: (D) Commercial Service. Section I.That the City Council Trash shall be collected from Notary Public of the City of Fayetteville, commercial customers as shown Zt7 Arkansas hereby repeals§50.40 below. My Commission Expires: 1 24' Rates for Services and enacts a (1) The monthly new§50.40 as follows: commercial rate shall be: 50.40-Rates For Services Commercial User Fee Schedule (A) Fee Increases.The Commercial Container Size Recycling and Trash User Fee Rate Per Pickup shall be adjusted annually based 95 Gallon Cart $19.83 upon the Consumer Price Index 2 cubic yards $47.50 (CPI)as published by the U.S. 4 cubic yards $88.45 — • Department of Labor,unless 6 cubic yards $115.00 CATHY WILES specifically waived by City 8 cubic yards $144.00 Li Council resolution. (2) Commercial 95-gallon Arkansas-Benton County (B) Residential Single- carts shall be picked up once per Notary Public-Comm# 12397118 Family/Duplex Service. week,Monday through Thursday. f; My Commission Expires Feb 20,2024 Recycling and Trash shall be Larger commercial containers shall _ 7.; _ .' collected from residential single- be serviced a minimum of once per `, `r �`.,..,;-- _:r - family/duplex customers one week and a maximum of six(6) time each week for the following times per week,Monday through rates: Saturday,except authorized 1 **NOTE** Please do not pay from Affidavit Invoice Recycling and Trash User Fee holidays for city employees and Wil]be sent. Schedule Container Volume unavoidable inclement weather. Monthly Rate (3) The rate for providing 32 $10.16 extra collection of any 95-gallon 64 $15.52 cart shall be twice the monthly 96 $22.03 collection rate based on the number • (1) There shall be no of collections per week as charge for the collection of established by§50.40(B)(1). residential yard waste. The rate for providing extra • (2) Residential single- collection of any commercial front family/duplex service customers load dumpster shall be one-half the shall receive bulk collection at monthly per cubic yard rate for no charge one time per year. each dumpster size. (3) If a residential (4) The rate for providing single-family/duplex customer cardboard and paper recycling wishes to exchange to a larger service shall be 25%of the 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 235-19 File Number: 2019-0646 2020 RECYCLING AND TRASH USER FEES: A RESOLUTION PURSUANT TO § 50.40(A) OF THE FAYETTEVILLE CITY CODE TO WAIVE THE AUTOMATIC ANNUAL PRICE ADJUSTMENT FOR ALL 2020 RECYCLING AND TRASH USER FEES WHEREAS, on December 18, 2018, the City Council passed Resolution 278-18 accepting and adopting the new Recycling and Trash Collection Rate Study that was conducted by MSW Consultants, LLC; and WHEREAS, on January 3, 2019, the City Council passed Ordinance 6138 which amended §50.40 Rates for Services of the Fayetteville City Code to align the City's recycling and trash collection rates with the approved rate study, resulting in an across-the-board increase fees; and WHEREAS, § 50.40 of the Fayetteville City Code allows the City Council to waive the automatic annual rate adjustment by resolution; and WHEREAS, due to the recent rate increase and continued cost cutting and efficiency efforts by the Recycling and Trash Collection Division, staff recommends that the City Council waive the automatic annual price adjustment for 2020 recycling and trash user fees. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas, pursuant to § 50.40(A) of the Fayetteville City Code, hereby waives the automatic annual price adjustment for all 2020 Page 1 Printed on 10116119 File Number: 2019-0646 Resolution 235-19 Recycling and Trash user fees. PASSED and APPROVED on 10/15/2019 Attest: FAYETTEVILLE;�' y CO %9s'•;Q -ANSP• Page 2 Printed on 10116119 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 I I (479) 575-8323 �\ Text File File Number: 2019-0646 Agenda Date: 10/15/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 8 2020 RECYCLING AND TRASH USER FEES: A RESOLUTION PURSUANT TO § 50.40(A) OF THE FAYETTEVILLE CITY CODE TO WAIVE THE AUTOMATIC ANNUAL PRICE ADJUSTMENT FOR ALL 2020 RECYCLING AND TRASH USER FEES WHEREAS, on December 18, 2018, the City Council passed Resolution 278-18 accepting and adopting the new Recycling and Trash Collection Rate Study that was conducted by MSW Consultants, LLC; and WHEREAS, on January 3, 2019, the City Council passed Ordinance 6138 which amended §50.40 Rates for Services of the Fayetteville City Code to align the City's recycling and trash collection rates with the approved rate study, resulting in an across-the-board increase fees; and WHEREAS, § 50.40 of the Fayetteville City Code allows the City Council to waive the automatic annual rate adjustment by resolution; and WHEREAS, due to the recent rate increase and continued cost cutting and efficiency efforts by the Recycling and Trash Collection Division, staff recommends that the City Council waive the automatic annual price adjustment for 2020 recycling and trash user fees. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas, pursuant to § 50.40(A) of the Fayetteville City Code, hereby waives the automatic annual price adjustment for all 2020 Recycling and Trash user fees. City of Fayetteville, Arkansas Page 1 Printed on 10/16/2019 Shannon Newman Submitted By City of Fayetteville Staff Review Form 2019-0646 Legistar File ID 10/15/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/25/2019 RECYCLING/TRASH COLLECTION (750) Submitted Date Division / Department Action Recommendation: A Resolution to Approve Waiving the Automatic Annual Price Adjustment for the 2020 Recycling and Trash User Fees Budget Impact: Account Number Project Number Budgeted Item? NA Current Budget Funds Obligated Current Balance Does item have a cost? NA Item Cost Budget Adjustment Attached? NA Budget Adjustment Purchase Order Number: Change Order Number: Original Contract Number: Comments: Remaining Budget Fund Project Title $ - 0 V20180321 Previous Ordinance or Resolution # Ord 6138, Res 278-18 Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF OCTOBER 15, 2019 TO: Mayor Jordan and City Council CITY COUNCIL MEMO THRU: Peter Nierengarten, Environmental Director Jeff Coles, Recycling and Trash Collections Director FROM: Shannon Newman, Financial Analyst - Recycling and Trash Collections DATE: September 25, 2019 SUBJECT: A Resolution to Approve Waiving the Automatic Annual Price Adjustment for the 2020 Recycling and Trash User Fees RECOMMENDATION: Staff recommends City Council approval of a resolution to waive the automatic annual price adjustment for the 2020 Recycling and Trash user fees. BACKGROUND: City Code 50.40(A) — Rates of Services; Fee Increases The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. In 2018, the City contracted with MSW Consultants to conduct a Recycling and Trash Collections Rate study to comprehensively evaluate the solid waste systems full cost of service and to develop a five-year financial plan with recycling and trash disposal rate recommendations. One of the recommendations was to apply the Consumer Price Index (CPI) increase to all customer classes and rates; previously the CPI had only been applied to residential rates. City Council passed Resolution 278-18 on 12/18/18 to adopt the new Recycling and Trash Collection rate study. Ordinance 6138 was approved by City Council on 1/3/19 to amend §50.40 Rates for Services of the Fayetteville City Code to align the City's Recycling and Trash Collection Rates with the rate study. DISCUSSION: The new rates approved by City Council went into effect on April 22, 2019. Due to the recent rate increase and continued cost cutting and efficiency improving efforts by the Recycling and Trash Collections Division, the CPI increase is not required for 2020. Pursuant to City Code 50.40(A), staff proposes approval to waive the automatic annual price adjustment for the 2020 Recycling and Trash user fees. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: None Attachments: Ordinance 6138 Resolution 278-18 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6138 File Number: 2018-0707 RECYCLING AND TRASH COLLECTION RATE AMENDMENTS: AN ORDINANCE TO AMEND § 50.40 RATES FOR SERVICES OF THE FAYETTEVILLE CITY CODE TO ALIGN THE CITY'S RECYCLING AND TRASH COLLECTION RATES WITH THE RECENT RATE STUDY WHEREAS, the Recycling and Trash Collection Rate Study completed by MSW Consultants made several recommendations based on a cost of service analysis and the goals of the City's 2017 Solid Waste Reduction, Diversion, and Recycling Master Plan which are reflected in the staff -recommended amendments to the rates for recycling and trash collection services below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby repeals § 50.40 Rates for Services and enacts a new § 50.40 as follows: 50.40 - Rates For Services (A) Fee Increases. The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. (B) Residential Single-Family/Duplex Service. Recycling and Trash shall be collected from residential single-family/duplex customers one time each week for the following rates: Recycling and Trash User Fee Schedule Container Volume Monthly Rate Page 1 Prin fed on 114119 Ordinance: 6138 File Number. 2018-0707 32 $10.16 64 $15.52 96 $22.03 (1) There shall be no charge for the collection of residential yard waste. (2) Residential single-family/duplex service customers shall receive bulk collection at no charge one time per year. (3) If a residential single-family/duplex customer wishes to exchange to a larger residential garbage cart size, the customer shall be assessed a $25.00 trip fee. No fee shall be assessed for customers wishing to exchange to a smaller cart. (4) The charge for an extra bag or an over -full cart shall be $6.72. (C) Residential Multi family Service. Trash shall be collected from residential multi -family customers one time each week at a rate of $9.72 per dwelling unit per month unless the owner of the multi- family complex requests greater volume/frequency of service than the minimum required service as determined by the Recycling and Trash Collection Manager. When requests for greater volume/frequency of service by an owner are made, rates shall be determined by the prevailing commercial service rate divided by the number of dwelling units. Multi -family trash service shall include recycling, subject to availability as determined by the Recycling and Trash Collections Director. (D) Commercial Service. Trash shall be collected from commercial customers as shown below. (1) The monthly commercial rate shall be: Commercial User Fee Schedule Commercial Container Size Rate Per Pickup 95 Gallon Cart $19.83 2 cubic yards $47.50 4 cubic yards $88.45 6 cubic yards $115.00 8 cubic yards $144.00 (2) Commercial 95 -gallon carts shall be picked up once per week, Monday through Thursday. Larger commercial containers shall be serviced a minimum of once per week and a maximum of six (6) times per week, Monday through Saturday, except authorized holidays for city employees and unavoidable inclement weather. (3) The rate for providing extra collection of any 95 -gallon cart shall be twice the monthly collection rate based on the number of collections per week as established by §50.40(B)(1). Page 2 Printed on 114119 Ordinance: 6138 File Number. 2018-0707 The rate for providing extra collection of any commercial front load dumpster shall be one -Lal f the monthly per cubic yard rate for each dumpster size. (4) The rate for providing cardboard and paper recycling service shall be 25% of the equivalent commercial container trash service, except that the Recycling and Trash Collection Division may waive that fee for all 95 -gallon cart customers. (5) Container rental is a flat fee per month. Container Rental/Dumpster Lease Fee Schedule Container Size (Cubic Yards) Monthly Rate 2 yd $13.53 4 yd $15.47 6 yd $ 18.00 8 yd $21.25 (E) Use of Composting Facility. Businesses, including commercial landscapers and tree trimmers, and nonresidents that bring brush to the city's composting facility for disposal will be charged as follows: Composting User Fee Schedule Size Rate Compact pickup trucks $5.25 Full size pickup trucks $8.40 Trailers up to 14 feet long $10.50 Trailers greater than 14 feet long $15.75 PASSED and APPROVED on 1/3/2019 Attest: , r Sondra E. Smith, C�"�*, krk�' er FAYF_l r' .�-x_s, Page 3 Printed on 114119 City of Fayetteville, Arkansas 113 West Mountain Street > Fayetteville, AR 72701 I (479) 575-8323 / Text File File Number: 2018-0707 Agenda Date: 1/3/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: B. 1 RECYCLING AND TRASH COLLECTION RATE AMENDMENTS: AN ORDINANCE TO AMEND § 50.40 RATES FOR SERVICES OF THE FAYETTEVILLE CITY CODE TO ALIGN THE CITY'S RECYCLING AND TRASH COLLECTION RATES WITH THE RECENT RATE STUDY WHEREAS, the Recycling and Trash Collection Rate Study completed by MSW Consultants made several recommendations based on a cost of service analysis and the goals of the City's 2017 Solid Waste Reduction; Diversion, and Recycling Master Plan which are reflected in the staff -recommended amendments to the rates for recycling and trash collection services below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby repeals § 50.40 Rates for Services and enacts a new § 50.40 as follows: 50.40 - Rates For Services (A) Fee Increases. The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. (B) Residential Single-Family/Duplex Service. Recycling and Trash shall be collected from residential single-family/duplex customers one time each week for the following rates: Recycling and Trash User Fee Schedule Container Volume Monthly Rate 32 $10.16 64 $15.52 96 $22.03 { 1) There shall be no charge for the collection of residential yard waste. (2) Residential single-family/duplex service customers shall receive bulk collection at no charge one City of Fayetteville, Arkansas Page 1 Printed on 1/4/2019 File Number.' 2018-0707 time per year. (3) If a residential single-family/duplex customer wishes to exchange to a larger residential garbage cart size, the customer shall be assessed a $25.00 trip fee. No fee shall be assessed for customers wishing to exchange to a smaller cart. (4) The charge for an extra bag or an over -full cart shall be $6.72. (C) Residential Multi family Service. Trash shall be collected from residential multi -family customers one time each week at a rate of $9.72 per dwelling 'unit per month unless the owner of the multi -family complex requests greater volume/frequency of service than the minimum required service as determined by the Recycling and Trash Collection Manager. When requests for greater volume/frequency of service by an owner are made, rates shall be determined by the prevailing commercial service rate divided by the number of dwelling units. Multi -family trash service shall include recycling, subject to availability as determined by the Recycling and Trash Collections Director. (D) Commercial Service. Trash shall be collected from commercial customers as shown below. (1) The monthly commercial rate shall be: Commercial User Fee Schedule Commercial Container Size Rate Per Pickup 95 Gallon Cart $19.83 2 cubic yards $47.50 4 cubic yards $88.45 6 cubic yards $115.00 8 cubic yards $144.00 (2) Commercial 95 -gallon carts shall be picked up once per week, Monday through Thursday. Larger commercial containers shall be serviced a minimum of once per week and a maximum of six (6) times per week, Monday through Saturday, except authorized holidays for city employees and unavoidable inclement weather. (3) The rate for providing extra collection of any 95 -gallon cart shall be twice the monthly collection rate based on the number of collections per week as established by §50.40(B)(1). The rate for providing extra collection of any commercial front load dumpster shall be one-half the monthly per cubic yard rate for each dumpster size. (4) The rate for providing cardboard and paper recycling service shall be 25% of the equivalent commercial container trash service, except that the Recycling and Trash Collection Division may waive that fee for all 95 -gallon cart customers. (5) Container rental is a flat fee per month. Container Rental/Dumpster Lease Fee Schedule Container Size (Cubic Yards) Monthly Rate 2 yd $13.53 4 yd $15.47 6 yd $18.00 City of Fayetteville, Arkansas Page 2 Printed on 1/4/2019 File Number.' 2018-0707 8 yd $21.25 (E) Use of Composting Facility. Businesses, including commercial landscapers and tree trimmers, and nonresidents that bring brush to the city's composting facility for disposal will be charged as follows: Composting User Fee Schedule Size Rate Compact pickup trucks $5.25 Full size pickup trucks $8.40 Trailers up to 14 feet long $10.50 Trailers greater than 14 feet long $15.75 City of Fayetteville, Arkansas Page 3 Printed on 1/4/2019 City of Fayetteville Staff Review Form 2018-0707 Legistar File ID 12/18/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Leif Olson 11/29/2018 SUSTAINABILITY/RESILIENCE (631) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of an ordinance adopting the updated recycling and trash collections cost -of -service I rates proposed in the Recyling and Trash Collection Rate Study conducted by MSW Consultants. NA Account Number NA Project Number Budgeted Item? NA Does item have a cost? NA Budget Adjustment Attached? NA Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget NA Fund NA Project Title V20180321 Previous Ordinance or Resolution 4 Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF DECEMBER 18, 2018 TO: Mayor and City Council THRU: Don Marr, Chief of Staff CITY COUNCIL MEMO FROM: Peter Nierengarten, Sustainability Department Director DATE: November 29. 2018 SUBJECT: Adoption of updated Recycling and Trash Collections Division's cost -of -service rates for commercial and residential customers. RECOMMENDATION: Staff recommends approval of an ordinance adopting the updated recycling and trash collections cost -of -service rates proposed in the Recycling and Trash Collection Rate Study conducted by MSW Consultants. BACKGROUND: In 2018 the City contracted with MSW Consultants to conduct a Recycling and Trash Collection Rate study to comprehensively evaluate the solid waste systems full cost of service and to develop a five-year financial plan with recycling and trash disposal rate recommendations. MSW Consultants provided a detailed analysis of the existing waste collection services, facilities and rates for each major service type. The consultant also provided a cost of service analysis and projected the rates needed to fund the various services. This included identifying the costs associated with new or expanding commercial, organics, commercial glass and multi -family recycling services - all supported in the 2017 Solid Waste Reduction, Diversion and Recycling Master Plan. And lastly, final collection and disposal rate recommendations are provided for all facilities and collection services. Implementation of the Recycling and Trash Collections Rate Study will enable the Recycling and Trash Collections Division to increase waste diversion by implementing the following service enhancements: • All-inclusive trash and recycling for multi -family and small commercial complexes (previously these customers had to pay extra for recycling services) • Expanding curbside recycling to apartment complexes with 24 units or less • Discounted commercial cardboard and paper recycling • Transition commercial food waste composting pilot to full service • Transition commercial glass recycling pilot to full service • Increase transfer station tip fees to encourage diversion (out -of -City transfer station rate includes a premium for us of City resources) Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 DISCUSSION: Ordinance amendments needed to implement the Recycling and Trash Collections Rate Study are located in Chapter 50.40 in the Public Works section of the City Code. Necessary amendments to codify the Study include: • Relocating language on Consumer Price Index (CPI) index increase so that it applies to all customer classes and rates — previously the CPI had only been applied to residential rates, • Adjusting Residential Single -Family Trash and Recycling Rates to align with the Rate Study recommendations, • Adjusting Residential extra trip and extra bag charges to align with the Rate Study recommendations, • Adjusting the codified multi -family rate to match the current rate, • Adding language that allows for all-inclusive trash and recycling for multi -family and small commercial complexes, • Adjusting Commercial Trash rate to align with the Rate Study recommendations, • Adding language to discount Commercial Recycling Rates, and • Adjusting Commercial Dumpster Lease Rates to align with the Rate Study recommendations. BUDGET/STAFF IMPACT: The overall rate impact of the recommended rates is a 9.1 % increase over current rates. Attachments: Chapter 50.40 Code Amendments Recycling and Trash Collection Rate Study from MSW Consultants ARTICLE III - COLLECTION CHARGES; BILLING 50.40 - Rates For Services (A) waived by City Council resolution_ (13) Residential Single-Family/Duple c Service. Recycling and Trash Garbage•--and-4ras4-shall be collected from residential sing le-family/duplex customers one time each week for the following rates: Recycling and Trash Garbage! -rash -User Fee Schedule Container; Monthly Volume Rate 32 70.16 64 (1) _—There shall be no charge for the collection of residential yard waste. (2) _=Residential sing le-familylduplex service customers shall receive bulk collection at no charge one time per year. (3) _:--If a residential single-family/duplex customer wishes to exchange to a larger residential garbage cart size, the customer shall be assessed a $20-,00-$25.00 sari-exchange-trigfee. No fee shall be assessed for customers wishing to exchange to a smaller cart. (4) --she-Garbage ash-User-F-ee-shall--be--adjusted-annually-based-+upon-the Consumer -Prise Index-{GP4}-aspublisped-by-the-"4S-Department ofl:abor--,4nIess-sper>ifiraII15 •waived -by -City Gourtsil-resolution.-The chargie for an extra ba or an over -full cart shall be $6.72. (B) _—Residential Multi -family Service. Trash shall be collected from residential multi -family customers one time each week at a rate of $9-2-5-$9.72 per dwelling unit per month unless the owner of the multi -family complex requests greater volume/frequency of service than the minimum required service as determined by the Recycling and Trash Collection Manager. Additionally, hemrecyc4rig sefvase--is-prewded- to-a-resident+al-r�lt+-fanafly-service-customer-afl-addit+onal-rate-of-^�-85-per dwelling-unit-Per-month-shail-�pty- When requests for greater volume/frequency of service by an owner are made, rates shall be determined by the prevailing commercial service rate divided by the number of dwelling units. Multi -family trash service shall include recycling, subject to availability as determined by the Recycling and Trash Collections Director (C) _—Commercial Service. Trash shall be collected from commercial customers as shown below. (1) The monthly commercial rate shall be, Commercial User Fee Schedule Commercial Container I Rate Size f Per i Pickup f V&99 95 Gallon Cart 18.83 $32� 2 cubic yards 47.50 4 cubic yards 8 cubic yards 144.00 (2) _—Commercial 95 -gallon carts-have-a-maximern, of, four-(4)-pickups-pef--week shall be picked up once per week, Monday through Thursday. Larger commercial containers shall be serviced a minimum of once per week and a maximum of six (6) times per week, Monday through Saturday, except authorized holidays for city employees and unavoidable inclement weather. (3) --The rate for providing extra collection of any 95 -gallon cart shall be twice the monthly collection rate based on the number of collections per week as established by §50.40(6)(1). The rate for providing extra collection of any commercial loadail-type-container front load dumpster shall be $8 -49 -one-half the monthly per cubic yard rate for each dumpster size per Gu is Yafd- (4) --The rate for providing cardboard and paper recycling service shall be- 25% of the equivalent commercial container trash service$8-1.9-per-subic-yard. (5) _—Container rental is a flat fee per month. Container Rental/Dumpster Lease Fee Schedule Container Size Monthly Rate (Cubic Yards) - 2 yd - $-12-8 q 13 4 yd $14,73$15.47 i 6 yd _ $4-7-'r451-.t}0 8 yd �-ik 4S21,-2-5 i _(6)---A-residential-multi-€ami{y-camplex-o€fic�-shall-paY--an-�ditionat.$4-85-pef-Maa#i-to-i er k and-tFash-collection-bill-as-if-it-were an individual-unit-when tree-r-esidLPtial-��1y-se wx is-xe+:,eiv+eg-resyel+i�g-aer�ise: _(-�?_-•-L-ea�1a#-�-}�e-6er�ta;�+er-�er��se-�e-reer�fh�{y-rare--for-one-�iei�up pef-•week-#ef-any-sera�erEia! est:�bEistir��rnt-rts+n�-Ic�dal!-Kype-sc�tair�ers••tc�r soMlestir�n o€ tlert3��e-shall-����:�-per-oubio-yafd sollested- (E)_—clor�3mersial-R acyc/iAy:_L-irrailed-miimersial_.recyr,ii --is-aitered-p- ha table-4elow. Once Per-Week Size Fate-Fer-Rie 4-yd--eafdboaFd 6-yd- ,�aFd4oar-d S23.76 $32:76 4--yd--pa per $22AI i -& gai-Feoysde-Nii $5 58 (F) Use of Composting Facility, (1) _-Businesses, including commercial landscapers and tree trimmers, and nonresidents that bring brush to the city's composting facility for disposal will be charged as follows: Composting User Fee Schedule Size Rate ` Compact pickup trucks $5.25 i. {' Full size pickup trucks 8.40 Trailers up to 14 feet long 10.50 Trailers greater than 14 feet long 15.75 1 (Code 1965, §§10-28, 10-29, 10-29.1; Ord, No. 1194, 4-6-59; Ord. No. 1443, 4-26-65; Ord. No, 2587, 12-18-79; Ord, No. 2751, 8-18-81; Ord. No. 2767, 10-20-81; Ord. No. 2855, 9-21-82; Ord. No. 2886, 1-18-83; Ord. No, 3626, 8-4-92; Ord. No. 3755, §§3, 4, 12-21-93; Ord. No. 3841, §1, 11-16-94; Ord. No. 3842, §3, 11-16-94; Ord. No. 3993, §§1-5, 9-17-96; Ord. No. 4111, §5, 8-4-98: Ord. No. 4349, 11-6-01; Ord. No. 4382, 3- 19-02; Ord. No. 4415, §5, 9-17-02; Code 1991, §50.40, Ord. No. 4457 §50.40, 01-21- 03; Ord. No. 4765, 09-20-05; Ord. No. 5278, 10-05-09; Ord. No. 5299, 12-15-09; Ord. No. 5470, 12-20-11; Ord. No, 5565, 02-19-13; Ord. No. 5691, 6-03-14) K'q 95Jh4 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 278-18 File Number: 2018-0706 RECYCLING AND TRASH COLLECTIONS RATE STUDY: A RESOLUTION TO ACCEPT AND ADOPT A 'NEW RECYCLING AND TRASH COLLECTION RATE STUDY WHEREAS, the City Council passed Resolution No. 49-17 on February 21, 2017, accepting and adopting an amended Solid Waste Reduction, Diversion, and Recycling Master Plan and revising the City's diversion goal to 40% by 2027; and WHEREAS, the City Council passed Resolution No. 49-18 on February 6, 2018, authorizing a contract with MSW Consultants, LLC for the development of a comprehensive cost -of -service and rate study for the Recycling and Trash Collection Division based on the goals set forth in the Master Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby accepts and adopts the Recycling & Trash Collection Rate Study, a copy of which is attached to this Resolution. PASSED and APPROVED on 12/18/2018 Page i Printed on 12/20/18 Resolution 278-18 File Number: 2018-0706 Attest: Sondra E. Smith, City Clerk Treasurer kf :1 r y r rr i AYETTEVILI_t. Page 2 Printed on 12120116 City of Fayetteville, Arkansas 113 West Mountain Street 1 Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2018-0706 Agenda Date: 12/18/2018 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: D. 15 RECYCLING AND TRASH COLLECTIONS RATE STUDY: A RESOLUTION TO ACCEPT AND ADOPT A NEW RECYCLING AND TRASH COLLECTION RATE STUDY WHEREAS, the City Council passed Resolution No. 49-17 on February 21, 2017, accepting and adopting an amended Solid Waste Reduction, Diversion, and Recycling Master Plan and revising the City's diversion goal to 40% by 2027; and WHEREAS, the City Council passed Resolution No. 49-18 on February 6, 2018, authorizing a contract with MSW Consultants, LLC for the development of a comprehensive cost -of -service and rate study for the Recycling and Trash Collection Division based on the goals set forth in the Master Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby accepts and adopts the Recycling & Trash Collection Rate Study, a copy of which is attached to this Resolution. City of Fayetteville, Arkansas Page 1 Printed on 12/19/2018 City of Fayetteville Staff Review Form 2018-0706 Legistar File ID 12/18/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Peter Nierengarten 11/29/2018 RECYCLINGITRASH COLLECTION (750) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of a resolution adopting the Recycling and Trash Collections Rate Study prepared by MSW Consultants Account Number Project Number Budgeted Item? No Does item have a cost? No Budget Adjustment Attached? No Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund Project Title V20180321 Purchase Order Number: Previous Ordinance or Resolution # Res 49-18 Change Order Number: Original Contract Number: Comments: Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF DECEMBER 18, 2018 TO: Mayor and City Council THRU: Don Marr, Chief of Staff CITY COUNCIL (MEMO FROM: Peter Nierengarten, Sustainability Department Director DATE: November 29, 2018 SUBJECT: Recycling and Trash Collections Rate Study RECOMMENDATION: Staff recommends approval of a resolution adopting the Recycling and Trash Collections Rate Study prepared by MSW Consultants. BACKGROUND: The City's Recycling and Trash Collections Division operates an integrated solid waste management program that services Fayetteville residents and businesses. In addition to providing the collection of refuse, recyclables and yard waste from residential and commercial customers, the City also owns and operates several waste management facilities, including a transfer station, recycling center, compost facility and two recycling convenience centers. The Recycling and Trash Collections Division is experiencing growth in accounts and has recently completed the regulatory process to increase the permitted tonnage limit at its transfer station. The Recycling and Trash Collections Division is funded through user fees charged to the residents and businesses directly receiving services. Although the City's rate structure allows it to appropriately and comprehensively charge users for the services received, the City has not conducted a formal cost -of -service and rate study for over twenty years. In early 2017 the City Council adopted the Solid Waste Reduction, Diversion and Recycling Master Plan. The plan identified several additional programs that would be necessary to divert more materials from the landfill, notably expanded recycling, food waste compost program and construction and demolition waste recycling. To adequately fund implementation of these programs the City needed to understand the anticipated operational costs of these programs. In anticipation of upcoming enhancements to the system as a result of Master Plan implementation, and because of the time elapsed since the prior cost -of -service study, the City retained MSW Consultants in 2018 to conduct a Recycling and Trash Collection Rate Study that would comprehensively evaluate the solid waste systems full cost of service, and to develop a five-year financial plan and collection and disposal rate recommendations. Mailing Address: 113 W. Mountain Street www.f�iyetteville-ar.gov Fayetteville, AR 72701 DISCUSSION: The process that MSW Consultants utilized to develop the Recycling and Trash Collections Rate Study contained the following steps and objectives: • Review collection and disposal operations and other ancillary programs provided by the Recycling and Trash Division, including staffing levels and administration, to obtain a detained understanding of the operation requirements of the system. • Compile historical and projected revenues, expenses, and capital purchases from budget documents and historical reports for the Recycling and Trash Division, including residential and commercial collections and the disposal and recovery operations at the transfer station, recycling center and compost facility. • With input from City staff, integrate the projected costs of new programs associated with implementing the Master Plan. • Establish test -year revenue requirements as well as projected full costs for a five-year planning period to identify the rate revenues that will be needed to cover direct operating expenses, capital purchases, and targeted operating reserve levels and assure the financial health of the system. • Recommend adjustments to the current rate structure as well as a five-year rate path to cover revenue requirements, provide the City's residents and businesses with appropriate incentives to utilize the recycling program, maximize rate equality, and minimize shock to existing customers. MSW Consultants provided a detailed analysis of the existing waste collection services, facilities and rates for each major service type. The consultant also provided a cost of service analysis and projected the rates needed to fund the various services. This included identifying the costs associated with new or expanding commercial, organics, commercial glass and multi -family recycling services - all supported in the 2017 Solid Waste Reduction, Diversion and Recycling Master Plan. And lastly, final collection and disposal rate recommendations are provided for all facilities and collection services. Implementation of the Recycling and Trash Collections Rate Study will enable the Recycling and Trash Collections Division increase waste diversion by implementing following service enhancement: • All-inclusive trash and recycling for multi -family and small commercial complexes (previously these customers had to pay extra for recycling services) • Expanding curbside recycling to apartment complexes with 24 units or less • Discounted commercial cardboard and paper recycling • Transition commercial food waste composting pilot to full service • Transition commercial glass recycling pilot to full service • Increase transfer station tip fees to encourage diversion (out -of -City transfer station rate includes a premium for us of City resources) BUDGET/STAFF IMPACT: The overall rate impact of the recommended rates is a 9.1% increase over current rates. The table below shows the rate impact on the various service categories. Service Current Rate Revenue Recommended Rate Revenue Recommended % Increase Single Family $4,600,834 $4,832,347 5.050 Multi -Family Residential (includes Drop-offs) $1,544,641 $1,515,913 -1.9% Commercial Trash & Recycling (combined) $3,079,898 $3,565,379 15.8% Temporary Containers—_. $58,900 $61,845 5.0% Drop -Box $1,267,628 $1,436,785 _ 13.3% Scale/Tip Fees $906,295 $1,085,936 19.8% Total for 2019 $11,458,196 $12,498,206 9.1% Additionally, to maintain rates that continue to cover increasing cost of service, the rate study recommends applying the Consumer Price Index (CPI) increase to all customer classes and rates — previously the CPI had only been applied to residential rates. Attachments: Recycling and Trash Collection Rate Study by MSW Consultants