AGENDA #2a
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Bruce Heflin, Public Works Director
SUBJECT: Curbside Implementation Report
DATE: April 4, 2001
As part of the budget process for fiscal 2000-2001, the Town Council authorized implementation of weekly residential refuse collection at the curb phased in over a two-year period, starting in February 2001. This is a follow-up report related to Phase I implementation.
The new collection service began as scheduled on February 5, 2001. The reduction of four positions has been achieved in the current fiscal year and five positions are scheduled to be reduced through attrition during next fiscal year. A total of 4,600 roll carts was acquired through an installment contract with BB & T in November 2000. All carts were delivered during the last week in January. The number of carts ordered anticipated an exemption rate of about 7%. We currently have an exemption rate of about 5%, or 228 households, for age and/or health reasons.
The implementation schedule, as presented to the Council on September 25, 2000, was completed as anticipated. Key aspects of this schedule are noted below.
September, 2000 Solicitation of bids completed; routing schedule completed
October, 2000 Bid awarded to Otto Industries
December, 2000 Roll carts delivered to Public Works; neighborhood meetings held
January, 2001 Roll carts delivered, along with information packet, to residents
February, 2001 Service for first phase neighborhoods started
DISCUSSION
In addition, those residents in the sections of Town included in the first phase of curbside service have received weekly collection of yard waste on a specific day. Please see the separate budget working paper titled “Yard Waste Collection”.
We have experienced some problem with residents leaving carts at the street after collections, primarily in areas where cans at the street have been a chronic problem. Such areas include Northside, Cameron/McCauley area and Westside (e.g., Coolidge Street). We will continue to monitor these areas and attempt to gain voluntary compliance. We recommend that the Council authorize establishment of rules and regulations which could be enforced to assure compliance.
The original analysis of conversion to curbside service indicated an initial net saving of about $52,900 during fiscal 2000-01. Our current estimate of this saving is about $47,000, based on the following:
Actual Projected
Personnel saving $34,000 $40,300
Operational saving $ 1,500 $ 1,620
Capital saving $ 8,900 $ 8,929
Fuel/maintenance saving $ 2,500 $ 2,050
Total saving $46,900 $52,899
The difference of about $6,000 between the original and current estimated saving results from the amount of attrition. In the original estimate, we assumed relatively higher salary rates than those actually realized when specific incumbents left their positions.
The estimated saving in 2001-02, originally estimated at $128,846, is revised to $191,600, primarily because of the favorable components of the debt financing of the carts. The actual unit cost for the carts was $34 compared to an original estimate of $55 and the interest rate obtained was 5.03% compared to an original estimate of 5.5%.
Because of the relative success of the first phase of curbside service, and, in response to numerous citizen requests to proceed with the second phase, we are studying the possibility of earlier implementation of phase two. We originally had anticipated a starting date of February 2002; it is possible that we will be able to start in mid- to late-fall.
We will continue to collect and analyze data to determine the impacts of this new service
and report periodically to the Council as requested.