MEMO TO: Mike Wildgen, City
Manager
Chuck
Soules, Public works Director
FROM: Bob Yoos, Solid
Waste Division Manager
SUBJECT: 2005 Solid Waste Rate
Study
DATE: May 18, 2004
Each year the staff provides a report to the City
Commission recommending refuse collection rates within the City of Lawrence for
the following year. Solid waste management is a City enterprise that entails a
wide variety of services. Services are provided by charging a fee as is done
in the Utility, Storm water and Parking Services Enterprise Funds. No sales
tax, property tax, franchise fee or other general taxes are used to fund the
solid waste management system.
Primary Factors Affecting Rates: Rates to provide
services for 2005 are affected by four primary factors. These are:
1. Increases in the Health
Care Plan costs for Solid Waste Division employees of approximately $74,000.
2. An increase in demand
for refuse service due to continued growth in the commercial sector
(approximately 8% per year since 1997) and residential sector (approximately 3%
per year since 1997). According to U.S. Housing Markets, a housing
research journal, Lawrence has recently been one
of the fastest home-building markets in the nation, based on total residential
building permits per area population.
3. A predicted 2004
inflation rate of about 3 percent including the high increases in fuel costs
and steel costs which have a significant effect on the Solid Waste Division.
4. The necessity of
maintaining an adequate fund balance for fluctuating annual capital
expenditures and the possibility of an increase in landfill tipping fees due to
higher operating costs or an increase in the current state surcharge on
tonnage.
Recommendations For Refuse Service Rates
In 2005:
Residential:
a. Residential
rate of $11.71 per month which is an increase of 2 percent (present rate is
$11.48 per month). A comparison of Lawrence's proposed rate and that of other cities is
contained in Attachment I.
b. Low-income-elderly
rate of $4.10 per month which is 35 percent of the residential rate as
established by Ordinance 6618. Increase criteria for eligibility for the
low-income-elderly rate to match the federal poverty guidelines for 2004. The
maximum annual income from all sources will be adjusted based on the 2004
Federal Poverty Guidelines.
Commercial:
a. A minimum
commercial rate of $17.03 per month which is an increase of 2 percent (present
rate is $16.70 per month).
b. Increase
commercial dumpster service rates 2 percent. (Individual rates vary according
to size of container and frequency of collection.)
A comparison of annual rate increases since 1988
is contained in Attachment II. The division is firmly committed to small
and consistent annual rate increases approximating changes in inflation and
personnel costs, and avoiding the erratic and sometimes large rate increases
once seen in the past.
Services Provided: The Solid Waste
Division provides once-a-week solid waste collection and once-a-week yard waste
collection for residents. The division continues to provide a wide range of
services with no additional charges to residential customers, such as
collection of bulk items, tires, and appliances and programs for household
hazardous waste and used oil. The division also performs weekly alley cleanups
in neighborhoods and downtown and schedules broad-based neighborhood cleanups
through Neighborhood Associations at no charge if they are scheduled on a
Friday.
Recycling Rates and Services: The Lawrence community, through
public and private endeavors, has achieved a recycling rate of 32 percent of
municipal solid waste generated (according to updated data from Franklin
Associates, Ltd., "Douglas/Jefferson Counties' Regional Solid Waste
Management Plan”). This is recognized as the highest recycling rate in the
state and surpasses the national average (about 27 percent) which includes
communities with curbside recycling programs. The Solid Waste Division is
increasing the focus on waste reduction in addition to recycling. The division
has developed a new compost facility which will enable increased recovery of
grass, leaves, and other plant and wood debris.
Commercial Cardboard Recycling Program: The Solid Waste
Division implemented a commercial cardboard recycling program in 1997. The
program targets commercial customers who generate small to medium amounts of
cardboard, specifically those that do not have access to storage space or
balers for their cardboard. The cardboard recycling program targets the second
largest volume of material generated in the community (after yard waste).
Cardboard drop-off boxes, similar to the newspaper drop-off boxes, were tested
in 2002 and the first drop-off location for cardboard was sited in 2003.
Currently there are three city-operated cardboard drop-off sites in Lawrence. Drop-off sites enable
businesses and residents who don’t have access to the current collection
program to have a convenient opportunity for recycling cardboard.
Old Newspaper Collection Program: The Solid Waste
Division has a newspaper drop-off program. Currently there are eight
city-operated newspaper drop-off sites in Lawrence. Newspaper is the largest single material
generated from residential sources after yard waste.
Old Office Waste paper Program: The Solid Waste
Division implemented a recycling program for office waste paper in 2002 serving
a pilot core of businesses, offices and schools. The program expanded to a
fully functional program serving the community in 2003. Currently over 60
collection locations serving more than 90 offices or businesses are
participating in the program.
Hazardous Wastes: The Solid Waste
Division implemented a Small Quantity Generator (SQG) program in 2000 which
targets smaller businesses with hazardous wastes needing proper disposal.
Also, the Household Hazardous Waste collection times have been expanded to
weekday times “by appointment” to make the program more “user friendly” and
service oriented.