Utilities Department

June 26, 2007

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

Tentative 2008 MSTUTentative 2008 MSTU

• BCC approval no later than July 15th annually

– Hauler Compensation

– Tentative MSTU

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

Tentative 2008 MSTU

• Program History

– Began in 1985

– Four year term contracts; funded by MSTU

– Annual review of haulers financials with no clear method to verify whether additional compensation was warranted

– Level of compensation was the same for all districts, although density and demographics were different

Tentative 2008 MSTU

• 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 2008 MSTU

• Program History

– Zones awarded to:

• Waste Management Incorporated (2)

• Republic Waste Services (2)

• Veolia Waste Services (1)

– MSTU reduced from $154.02 to $146.06 per household per year

Tentative 2008 MSTU

Tentative 2008 MSTU

• MSTU

– Components

• Hauler Compensation

• Disposal

• Administrative Costs

Tentative 2008 MSTU

• Hauler Compensation: 2-1-1 Service

Zone 2007 2008 Variance

1 $ 76.63 $ 78.88 +$2.25

2 $110.15 $113.37 +$3.22

3 $113.22 $116.53 +$3.31

4 $102.80 $105.81 +$3.01

5 $111.75 $115.02 +$3.27

Avg $103.64$106.82 +$3.18

Tentative 2008 MSTU

Tentative 2008 MSTU

• Disposal Per Household– Waste Generation Study – Adjusted disposal component

2007 2008 Variance

Tons 1.65 1.65 0.00

Cost $49.81 $49.81 $0.00

Tentative 2008 MSTU

• Administrative Costs

2007 2008 Variance

$7.65 $8.01 $0.36

• Program Cost Summary 2008

Collection $106.82

Disposal $ 49.81

Admin $ 8.01

Total Cost $164.64

Tentative 2008 MSTU

• Program Cost Comparison

2007 2008 VarianceCollection $103.64 $106.82 +$3.18Disposal $ 49.81 $ 49.81 $0.00Admin $ 7.65 $ 8.01 +$0.36Total $161.10 $164.64 +$3.54Fuel $ 6.47 $ 0.00 - $6.47 Total $167.57 $164.64 - $2.93

Tentative 2008 MSTU

• Used program cash balances to offset increases as long as possible

MSTU Cost Subsidy2002 $146.06 $147.41 $1.352003 $146.06 $147.68 $1.622004 $146.06 $151.46 $5.402005 $148.06 $149.70 $1.642006 $153.00 $151.10 $0.002007 $167.57 $167.57 $0.002008 $167.57 $164.64 $0.00

Tentative 2008 MSTU

• Considerations– The existing MSTU of $167.57 exceeds

2008 projected costs of $164.64 by $2.93– The current Hauler contracts expire

December 2008 and will be rebid– New contracts will go in effect January

2009– Reserves should be maintained to mitigate

costs related to the new program

Tentative 2008 MSTU

• Recommendation

– Adopt the existing MSTU amount of $167.57 per household per year for program year 2008

Tentative 2008 MSTU

Tentative 2008 MSTU

Historic Annual MSTU

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

Tentative 2008 MSTUResidential Collection Program

Rate Comparison

- Palm Beach County $481.00

- Seminole County $189.00

- Brevard County $174.82

- Lake County $174.00

- Hillsborough County $170.59

-Orange County (Proposed) $167.57

Tentative 2008 MSTUResidential Collection Program

Rate Comparison

- Ocoee $228.00

- Apopka $192.00

- Winter Garden $192.00

- Winter Park $177.36

- Orlando $176.52

- Orange County (Proposed) $167.57

Tentative 2008 MSTUMSTU Comparison

$177.36

$189.00

$192.00

$481.00

$167.57

$167.57

$170.59

$192.00

$174.00

$176.52

$174.82

$228.00

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550

Orange County (Current)

Orange County (Proposed)

Hillsborough County

Lake County

Brevard County

City of Orlando

City of Winter Park

Seminole County

City of Winter Garden

City of Apopka

City of Ocoee

Palm Beach County

• Tentative MSTU:

$167.57 per household per year

• Hauler Compensation:

Zone 2007

1 $ 78.88

2 $113.37

3 $116.53

4 $105.81

5 $115.02

Avg $106.82

Tentative 2008 MSTU

• Requested Action

– Establish tentative Mandatory Refuse and Recycling program MSTU at $167.57

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

Tentative 2008 MSTU

Utilities Department

June 26, 2007

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

Tentative 2008 MSTUTentative 2008 MSTU