MEMO TO: David Corliss, Interim City Manager

Debbie Van Saun, Assistant City manager

Chuck Soules, Public works Director

FROM: Bob Yoos, Solid Waste Division Manager

SUBJECT: 2007 Solid Waste Rate Study

DATE: April 25, 2006

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 2007 are affected by four primary factors. These are:

1. Increases in the personnel costs for Solid Waste Division employees of approximately $351,000. Primary factors are the addition of a three–person collection crew to accommodate growth, anticipated merit increases, cost of health insurance and possible annual wage adjustments.

2. An increase in demand for refuse service due to continued growth in the commercial sector and residential sector (approximately 3% per year since 1997).

3. A predicted 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 (particularly meeting the Division’s “Equipment Replacement Schedule” for 2007) 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 2007:

Residential:

a. Residential rate of $12.19 per month which is an increase of 2 percent (present rate is $11.94 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 $4.27 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 2006. The maximum annual income from all sources will be adjusted based on the 2006 Federal Poverty Guidelines.

Commercial:

a. A minimum commercial rate of $17.73 per month which is an increase of 2 percent (present rate is $17.37 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 33 percent of municipal solid waste generated (according to surveys of local recyclers and 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 has enabled 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 (currently serving more than 500 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 seven 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 nine 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 more than 120 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.