Solid Waste –Exclusive Commercial Franchise

PRESENTATION TO BOARD OF COUNTY COMMISSIONERS

MARCH 30, 2010 SPECIAL MEETING

Background

• September, 2009– EWS: 7 year/$50,000,000 contract for residential

waste• January 22, 2010

– Staff informed that EWS will open transfer station

• January 25, 2010– EWS: diverted 1000 tons/week of commercial

waste (29% of all waste stream) through their transfer station to Georgia

Results: Solid Waste Operations

• Loss of 1000 tons ($52,000/week in revenue totaling $2,710,760 annually)

• Potential to lose an additional 1000 tons of commercial waste – 2000 tons = 59% of all waste stream– If all commercial waste is diverted:

• No longer operate transfer station• Halt development of resource recover park• Halt development of organics recycling plan• Lose opportunity to control waste stream so that we can

meet state mandated 75% recycling goal

Results: Solid Waste Operations

Loss Estimate

Potential Losses EWS Commercial Diversion Only

All Commercial Waste Diversion

Tonnage/week 1,000 tons 2,000 tons

Revenue/week $ 52,130 $ 104,260

Revenue/year $ 2,710,760 $ 5,421,520

Work Force Reduction

Potential Losses EWS Commercial Diversion Only

All Commercial Waste Diversion

Reduction in Force – FY10 +2 FTEs +2 FTEs

Reduction in Force – FY11 +3 FTEs +20 FTEs

FY10 Budget $9,300,000

AC Transfer Station Total Tons

1 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728293031323334353637383940414243444546474849505152530

500

1000

1500

2000

2500

3000

3500

4000

4500

20092010

Week of Fiscal Year

To

ns

AC Transfer Station Commercial Tons

1 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728293031323334353637383940414243444546474849505152530.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

20092010

Week of Fiscal Year

To

ns

EWS Opens Trans-fer Station

Short Term Response

• Short term– Reduce operations costs at transfer station– Begin discussions with NR to reduce tipping

fee (single biggest line item)– Determine cost to retain remaining

commercial haulers • Reduce tipping fee, cost to operations

– FY10 ~$450,000– FY11 ~$1,200,000

Long Term Response

• Implement exclusive commercial franchise (regain control of waste stream)– Have met legal requirements– Authorization by County/City commissions to

implement exclusive commercial franchise per our interlocal agreement

– Conduct joint bid process– Award franchise– Implement no later than October 2011

Staff Recommendations

• Direct staff to begin process for implementation of exclusive commercial franchise

• Direct staff to finalize negotiations for implementation of exclusive franchise with City of Gainesville

Solid Waste –Exclusive Commercial Franchise

PRESENTATION TO BOARD OF COUNTY COMMISSIONERS

MARCH 30, 2010 SPECIAL MEETING