The URL can be used to link to this page

Home My Public Portal About05-24-2010 Public Works Report Town Council Town of Watertown Committee on Public Works, Meeting May 24, 2010 Report: May 25, 2010 The Committee met May 24t" at 7:30 pm in the Council Chambers to continue discussion of Business Trash Collection. Present were: Susan Falkoff, Chair; Steve Corbett, Vice-chair; Vincent Piccirilli, Secretary; DPW Superintendent Gerald Mee; Deputy Superintendent Sue Tamber; and DPW Clerk Mary Haley. Councilor John Donohue was also present. As a follow up to the meeting on April 21 st, Mr. Mee presented a memo with the DPW's proposal to restructure the commercial trash collection program, along with projected program costs. (copies attached) The cost projection shows the Town's direct costs would be $437 per one cubic yard toter, per year, including mandatory recycling. Recycling could either be in the small containers that residences used or in an additional toter. The Committee discussed what the appropriate charge for this service should be. Mr. Mee stated that the Town should charge the same as a private hauler for the same service, which he estimated would be $1,260/year for trash and recycling. Councilor Donohue said that he called companies and got estimates for his business that were between $10 and $14 per toter per week for trash only ($520 to $728/year per toter). Mr. Mee said he would be open to a cost-plus structure that allowed the Town to recover both its direct and indirect costs. The Committee also discussed whether the program should be limited to one toter per business, or to allow businesses to have multiple toters. Mr. Mee said he would be agreeable to allowing multiple toters as long as the Town fully recovers its costs, and that recycling is mandatory. It was felt that for more than 3 toters, the program would not be financially attractive to most businesses, since the price per cubic yard charged by private haulers goes down for larger volumes. After further discussion, the Committee voted unanimously to recommend that the DPW proceed with its new commercial trash collection policy as proposed, with the following recommendations: a. The annual fee per trash toter per year should be the direct cost of $437 plus 20% to cover indirect costs, or about $525/year. b. The program should be limited to a maximum of 3 trash toters per business, and must include mandatory recycling. c. The new program should be implemented with enough time to allow businesses to make other arrangements, with January 1, 2011 as the suggested start date. Mr. Mee also asked that the issue of fines and enforcement for illegal dumping or placing of commercial trash on a sidewalk be examined. It was recommended that the existing Town ordinance be reviewed and revised in conjunction with the Rules & Ordinances Committee. The committee agreed to take up the matter of the proposed community path, in conjunction with the Department of Community Development & Planning, at its next meeting tentatively scheduled for June 24 at 7:30 pm. The meeting adjourned at 8:30 pm. Report prepared by: Vincent Piccirilli Page 1 of 1 1630 TOWN OF WATERTOWN x- DEPARTMENT OF PUBLIC WORKS C r 124 ORCHARD STREET WATERTOWN, MASSACHUSETTS 02472 Tel: 617-972-6420 Fax: 617-972-6402 TO: Michael J. Driscoll, Town Manager SubCommittee on Public Works FROM: Gerald S. Mee, Jr. Superintendent of Public Works Sue Tamber, Deputy Superintendent DATE: 24 May 2010 RE: Restructure of Commercial Trash Collection Program Projected Costs and Proposed Changes At the meeting of 21 April 2010 the subcommittee tasked the Department of Public Works with the creation of a new commercial trash collection policy "... subject to the following limitations: a. Limit commercial trash pickup to small businesses with a maximum of one toter per week. Customers must purchase a standard trash toter. b. Customers who choose to use this service will be given recycling bins. Recycling will be picked up as part of the residential route. c. The fee should fully recover our costs, including administrative costs. The Town Auditor may assist in developing the costs. Fees should be billed up front..." Pursuant to directives of the Town Council Subcommittee on Public Works, we have reviewed costs with the Town Auditor, Mr. Tracy. RECOMMENDED OVERALL PROGRAM STRUCTURE Only those businesses with put out volumes meeting the parameters established above will be eligible. Trash will be collected once weekly. No overflow material will be allowed or collected. Businesses deciding to participate will pay for containers and for service delivery via purchase of stickers at the Department of Public Works. Businesses may purchase service for a full year or for a six month block of time. The businesses will receive two stickers, one for trash and one for recycling, to be affixed to their respective containers. PROGRAM COSTS, Town cost driven Costs to each business would include cost for service delivery, tonnage disposal, Town costs to administer and monitors the program and the onetime purchase of trash and recycling containers in order to participate. Service Costs would total $ 437.22 per business per year. These include the collection costs, Town administrative and monitoring costs and disposal costs. They are further detailed below. Costs for container purchase would depend upon the type of recycling container selected by the individual business. Calculations for service categories and recycling container options are also detailed below. I:\Alldata\Trash\Recommendations Restructure Commercial Trash 5 24 10.Doc SERVICE COSTS Collection Costs Collection costs would be $ 186,64/$ 190 per year for each account. This is the labor cost for the collection of trash and recycling. Tonnacae Tonnage cost per account is estimated at $ 206.25 per account annually. 350 tons per year (estimated down from current 781) $ 66/ton Note: this cost will rise according to increments in the Town's cost to tip trash. $ 23,100 This is then divided by 112 accounts, the estimated number of businesses that would remain with the program. Administrative and Clerical Costs The estimated charge per account for administrative and clerical overhead would be $ 38.50 per account per year. $12.50 Clerical time = one half hour per account @ $ 25/hr $21.00 Administrative time = one half hour per account at$42/hr $ 5.00 Stickers, stationery Monitorina Costs The estimated cost for monitoring accounts would be $ 5.82 per account. Monitoring will be performed to ensure that collection is being made properly by the hauler and that put out is being made properly by the customer. A supervisor will review the collection four times annually. SERVICE COST SUMMARY The total cost for annual participation is estimated to be $437.22 per business which would be paid up front. Small businesses could opt to purchase service for six month blocks of $ 218.61. These are exclusive of the container cost. There will be no refunds for service. These figures are based on the best available data. Should the number of participating businesses prove to be less than estimated, fixed costs will go up for participants. Participation by more businesses will spread fixed costs out, reducing them. We anticipate annual changes based on pricing increments to costs the Town pays, which must be factored into full cost recovery. CONTAINER PURCHASE Participating businesses must use the containers issued by the program and would purchase their containers outright. The business will purchase both a trash and recycling container. These are one-time costs. Each business would purchase one tote only for trash collection. These will be 65 gallon totes for$ 76 each. Purchase would be made at the Department of Public Works and the containers I:Wlldata\Trash\Recommendations Restructure Commercial Trash 5 24 10.Doc would be delivered to the business location. The containers would be marked with the name of the business prior to delivery. For recycling, the business may choose between the 65 gallon tote at $ 76 and a 22 gallon curbside recycling bin at $ 8. As with trash totes, containers would be delivered with the name of the business marked on the container. Businesses choosing curbside containers would take the container upon payment at the Department of Public Works. For businesses purchasing two totes, the total purchase price would be $ 152.00. For those purchasing a tote and a curbside bin, the cost would be $ 84.00. There would be no refunds on container purchases. There would be no credit of bin purchase in the event a business decides to purchase a tote. All materials put out by businesses must fit in the two containers with the exception of corrugated cardboard, which shall be cut down to pieces no larger than 3' x 3' , tied and placed next to their recycling container, COMPARISON TO THE CURRENT PROGRAM AND TO PRIVATE SERVICE The current program offers collection of up to three cubic yards of trash per week at $ 260 a year with no containers and no recycling. This discourages recycling. For businesses purchasing two totes, total first year costs would be $ 437.22 service (annual) $ 152.00 tote purchase (one time) $ 589.22 For businesses purchasing a tote for trash and a bin for recycling, total first year costs would be $ 437.22 service (annual) $ 84.00 bin purchase (one time) $ 521.22 While these costs would represent an increase over current charges, they add recycling and are still less than half the rate on the open market. Were individual businesses to purchase private service, the cost could be approximately $1,260 annually. This is based on a cost of$ 60 per month for trash and $ 45 per month for recycling for twelve months. As discussed previously, the Town cannot and should not be offering the service for less than the cost on the open market. It is my recommendation, therefore, that the charges align with those of the private sector, making the charge $1,260 annually per business to provide trash and recycling collection. PROGRAM OPERATION The Town would announce the program change to businesses by certified mail, notices in the Watertown Tab and Globe West and mailing to the Belmont Watertown Chamber of Commerce. We anticipate there will be a learning curve to educate all those involved, either participating or opting not to participate. We should look at fines for illegal dumping and curbside placement of trash for businesses that are not part of program. We know in some instances we will be forced I:Wlldata\Trash\Recommendations Restructure Commercial Trash 5 24 10.Doc to pick up materials put out. We recommend a fine of$ 50 per occurrence. Monitoring may result in suspension from the program. No refunds would be made for businesses suspended from the program. Please let us know if you need any further information. I:\Alldata\Trash\Recommendations Restructure Commercial Trash 5 24 10.Doc Revised Commercial trash Program Cost Projections Allied Item Costs Subtotal Weekly business trash collection $ 201.00 Weekly business recycling collection $ 201.00 Weekly $ 402.00 Annually = x 52 $ 20,904.00 per account $ 186.64 $ 186.64 Town 1/2 hr. clerical per business per year $ 12.50 1/2 hr. admin. per business Per year $ 21.00 stickers, paper per business per year $ 5.00 $ 38.50 Supervisor monitoring Supervisor monitoring 4 quarters $ 652.14 spread over— 112 accounts $ 5.82 $ 5.82 Tonnage 350 T x$66/T $ 23,100.00 divided by —112 accounts $ 206.25 $ 206.25 TOTAL ANNUAL SERVICE CHARGES Annual $ 437.22 Semi annually $ 218.61 Direct Cost to Business Container cost Container+Service Purchase of Totes 65 gallon $ 76/ea for discussion two 65 gallon totes $ 152.00 $ 589.22 curbside recycling bin $ 8/each 65 gallon tote and curbside bin $ 84.00 $ 521.22 I:\AIIData\Trash\Commercial Trash\costs Program revision 5/24/2010