Department of Solid Waste ManagementFY11 Budget Update

Mayor’s Report Harry J. Hayes, Director

January 19, 2011

Outline

• Mission• Major Department Business Functions• Key 2011 Objectives• Budget Review FY08 - Present• Budget Actions Required

– Recycling Expansion– Used/Scrap Tire Management

• Future

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Department Mission

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The mission of the Department of Solid Waste Management is to provide cost effective, environmentally sound and safe solid waste management services to the citizens of Houston.

Solid Waste Management DepartmentCore Business Functions

• Residential Garbage (Automated Collection)• Tree & Junk Waste• Yard Waste Recycling• Recycling: Single & Dual Stream• Dead Animal Collection• Neighborhood Depositories Expansion• Transfer Station Management and Refuse Disposal

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SWMD Key Objectives for FY 2011

• Reduce collection and disposal of yard trimmings by up to 60,000 tons.

• Increase automated recycling collection by at least 30,000 new homes.

• Expand neighborhood recycling opportunities with the opening of new Neighborhood Depository Sites and expanded Adopt-a-Container programs.

• Offer automated recycling for small businesses.

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SWMD Budget

Fiscal Years 2008 - 2011 Fiscal Year Highlights• FY08 first “whole city” service in nearly

25 years, added 85,000 formerly contracted units to city service.

• FY09 includes Hurricane Ike related expenses, addition of Clear Lake Community and higher fuel expenses.

• FY10 includes expanded automated recycling, renegotiated and reduced disposal fees, garbage reroutes and full year of Tree Waste Program.

• FY11 opened two new Neighborhood Depository Sites, fully implemented compostable bags and MORE Automated recycling.

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SWMD Budget Management

7* fy11 projections based on actual budget

Budget Management

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Adj. Budget Actual Expense SavingsAdj. Bud.

Redux

fy07 $ 72,078,405 $ 69,972,621 $ 2,105,784 2.9%

fy08 $ 75,145,178 $ 74,082,830 $ 1,062,348 1.4%

fy09 $ 75,787,162 $ 74,418,745 $ 1,368,417 1.8%

fy10 $ 70,236,945 $ 68,494,838 $ 1,742,107 2.5%

fy11 * $ 70,278,682 $ 67,900,916 $ 2,377,766 3.4%

Total $ 365,032,011 $ 355,585,994 $ 8,656,422 2.4%

* fy11 projections based on actual budget

Financial Management• SWMD has consistently come in

under budget while:– Absorbing annual pay and

benefit cost increases.– Expanding services offered to

customers.– Delaying equipment replacement

and acquisition.

• Department Management monitors costs and effectiveness of services.

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Budget Action Required – ACR Expansion

• 28% of homes currently on Automated Recycling.

• Approx. $25.0 million required to expand to rest of city.– $17.7 million for carts.– $7.2 million for trucks.

• Citywide expansion would save at least $3.0 million in annual disposal.

• Recommend that Council adopt the expansion plan as presented with $3.50 fee.

– Recycling– Depositories– Neighborhood Protection Expansion

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Budget Action Required – Scrap Tires

• The city needs better management & oversight of used tire generators.

• Illegal dumping of scrap tires is a public health nuisance.

• Between 4,000 – 5,000 used tire generators in the city limits.

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Tire Management

• Nearly 3.2 million vehicles registered in the City of Houston and Harris County.

• 600,000 – 800,000 tires “changed” annually.

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TCEQ Tire Registrations

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Used/Scrap Tire EntitiesRegistered with TCEQ

• 86 Transporters• 1,576 Generators• 1 Transportation Facility• 6 Scrap Tire Facility• 1 Storage Facility• 6 Processors• 1 LRPUT

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Used/Scrap Tire EntitiesIn City’s GIS Data System

• 4,487– Franchise Tire Shops– Franchise Repair Shops– Auto Salvage Yards– New/Used Car Dealers– Rent-a-tire Centers– Neighborhood Tire

“Yards”

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Illegal Dumping Facts

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Illegal Tire Dumping Costs

• 5,148 Staff Hours @ $1.0 million.

• Disposal for 1.7 million lbs of tires collected @ $123,000 for disposal.

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Public Safety & Health Protection

• SWMD estimates a cost of $250,000 to monitor used/scrap tire operations for compliance with City and TCEQ regulations.

• Houston should follow the model of other large Texas cities in managing this public health concern.

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Summary• SWMD has managed,

reduced and controlled costs during tough economic times.

• Renegotiated expensive contracts, thereby insulating citizens from undue expensive services.

• Expanded Recycling and other services.

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Questions

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