Utilities Department

June 24, 2008

Mandatory Refuse & Mandatory Refuse & Recycling Collection Services Recycling Collection Services

Tentative 2009 MSBUTentative 2009 MSBU

• BCC approval no later than July 15th annually

– Hauler Compensation

– Tentative MSBU

• Final MSBU and hauler compensation rate adoption at first Budget Public Hearing in September

Tentative 2009 MSBU

• Program History

– Rates competitively bid by zone in 2002; seven year Franchise Agreements

– 5 zones of approximately equal size; each hauler limited to a maximum of two zones

– Objective approach to calculating annual compensation by zone for collection services using the Consumer Price Index

Tentative 2009 MSBU

• Program History

– Contracts expire December 31, 2008

• Haulers did not want to extend contract

– Bid out seven year service starting 2009

• Included automated collection in bid

• Presented collection options to focus groups

– BCC approved manual collection service bids for 2009

Tentative 2009 MSBU

Tentative 2009 MSBU

• MSBU

– Components

• Hauler Compensation

• Disposal

• Administrative Costs

Tentative 2009 MSBU

• Hauler Compensation: 2-1-1 Service

Zone 2008 2009 Variance

1 $ 78.88 $171.96 +$93.08

2 $113.37 $165.60 +$52.23

3 $116.53 $171.96 +$55.43

4 $105.81 $164.64 +$58.83

5 $115.02 $169.68 +$54.66

Avg $106.82 $168.77 +$61.95

Tentative 2009 MSBU

Tentative 2009 MSBU

• Hauler payment increase 58% from 2008 to 2009

– Current Contract bid in 2001– Average fuel cost increased 146%– Average truck driver wage increased 90%– Steel prices increased 85%

Reasons for collection cost increase

Tentative 2009 MSBU

• Disposal Per Household2009 $49.81 Unchanged from 2008

• Administrative Costs 2009 $8.01 Unchanged from 2008

• Program Cost Summary 2009

Collection $168.77

Disposal $ 49.81

Admin $ 8.01

Total Cost $226.59

Tentative 2009 MSBU

Orange County MSBU

Residential Collection ProgramRate Comparison

- Miami-Dade County $439.00

- Palm Beach County $360.44

- Broward County $270.00

- Orange County (Proposed) $226.59

- Lee County $224.77

- Hillsborough County $196.24

- Seminole County $191.00

Orange County MSBUMSBU Comparison

$439.00

$270.00

$360.44

$226.59

$224.77

$191.00

$196.24

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500

Seminole County

Hillsborough County

Lee County

Orange County (Proposed)

Broward County

Palm Beach County

Miami-Dade County

• Tentative MSBU:

$226.59 per household per year

• Hauler Compensation:

Zone 2007

1 $171.96

2 $165.60

3 $171.96

4 $164.64

5 $169.68

Avg $168.77

Tentative 2009 MSBU

• Requested Action

– Establish tentative Mandatory Refuse and Recycling program MSBU at $226.59

– Set annual rate of compensation to the haulers as presented today

Tentative 2009 MSBU

Utilities Department

June 24, 2008

Mandatory Refuse & Mandatory Refuse & Recycling Collection Services Recycling Collection Services

Tentative 2009 MSBUTentative 2009 MSBU

• Program Cost Comparison

2008 2009 VarianceCollection $106.82 $168.77 +$61.95Disposal $ 49.81 $ 49.81 $0.00Admin $ 8.01 $ 8.01 $0.00Total $164.64 $226.59 +$61.95Adj $ 2.93 $ 0.00 - $2.93 Total $167.57 $226.59 +$59.02

Tentative 2009 MSBU