HomeMy WebLinkAbout021005S CC Min
CITY COUNCIL SPECIAL SESSION
THURSDAY, FEBRUARY 10, 2005
MUNICIPAL BUILDING
3800 UNIVERSITY BLVD.
7:30 A.M.
The City Council convened in Special Session in the Bill Watson Conference Room
(3800 University Blvd.) on February 10, 2005, with the following members present:
Mayor Ballanfant presiding, Council Members Segal, Farley and Woods. The City
Manager, City Secretary, Assistant City Manager/Public Works Director, Finance
Director, General Services Superintendent and Risk Manager were also present.
The notice for this meeting was posted in accordance with the Texas Government Code,
th
Chapter 551, on the 4 day of February 2005 at 4:00 p.m.
Solid Waste Collection.
Matters related to solid waste collection including request for proposals received
February 1, 2005 for an on-call contractor for supplemental collection, purchase of two
rear load trucks, employing full-time drivers and full privatization service.
The City Staff presented the following report:
Solid Waste Alternatives
This information will allow a comparison of three alternatives for serving the Citizens of
West University Place. The alternatives are as follows:
1. Continue to operate the Solid Waste Collection for the City with full time
and temporary employees, purchasing two rear load trucks.
2. Continue to operate with full time and temp employees, and contract
services that will provide assistance during a staff shortage period,
3. Look at possible long-term contract for solid waste collection.
Please keep in mind that employees, equipment and facilities required for Recycle
Express would continue to be maintained by the City of West U.
Alternative 1: Solid Waste Collection by the City of West University Place
Budget projections based on the City continuing Solid Waste Collection, with the
purchase of two rear load trucks, with each truck having a driver and two temp pick-up
personnel. Financial projections are based on 5 years where applicable for revenues and
expenditures. Estimates are based on current monthly rates of $15.75 per customer and
4973 customers.
City Council Special Session, February 10, 2005
The advantages of this approach are:
1. Solid waste services could be maintained by city personnel,
2. Continued high level of Customer service,
3. Reduction in insurance and Workers Comp claims,
4. Better utilization of employees with commercial license, with increased
safety,
5. Better compaction of waste to more efficiently haul to transfer station.
6. Rear load trucks are cheaper to purchase than side load trucks.
Disadvantages are:
1. Continued liability/risk exposure,
2. Size considerations could be a problem,
3. Solid Waste Vehicles remain located in the City?s Center.
Alternative 1 Projection:
2005 2006 2007 2008 2009
Personnel 438,950452,100465,700479,700 494,100
Tipping fees 200,000210,000210,000215,000 215,000
Operating costs 66,97073,70081,10089,200 98,100
Equipment costs 107,25086,00091,00096,000 102,000
Capital outlay 35,000
----
Administrative costs 225,000230,000230,000235,000 235,000
Total Costs 1,073,170 1,051,800 1,077,800 1,114,900 1,144,200
Revenues
$15.75 * 4970 940,000940,000940,000940,000 940,000
Customers
Rate increase - $0.50 -32,700 32,700
--
Rate increase - $0.50 32,700 32,700
---
Recycling revenues 125,000125,000130,000130,000 130,000
Other revenues 10,00010,00010,00010,000 10,000
Total Revenues 1,075,000 1,075,000 1,080,000 1,145,400 1,145,400
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City Council Special Session, February 10, 2005
Net Revenue 1,83023,2002,20030,500 1,200
(Expenditure)
Fund Balance 207,890209,720232,920235,120 265,620
Beginning
Fund Balance 209,720 232,920 235,120 265,620 266,820
Ending
Alternative 2: Combined City - Contractual Services
We received three proposals for temporary contractual services, Republic Waste was the
only proposal that was close to our current customer rate at $15.75/customer, with them
picking up 1100 customers per day. We requested that all contractors consider a two-
month contract. Republic Waste did not feel that they could provide assistance in a time
increment of less than 6 months. We have reviewed our 2005 budget and feel with some
alteration, we could fund a 6-month contract as follows.
1. Transfer equipment replacement in the amount of $107,250.00,
2. Two unfilled drivers salary for 6 month in amount of $42,000.00,
3. Reduced tipping fees in amount of $50,000.00,
4. Operation expenses of one truck $10,000.00.
All these proposed adjustments should sufficiently cover the associated cost, which is
estimated at $207,900.00.
The advantages of this approach are:
1. Assist the current staff by supplementing work load,
2. Will provide an opportunity to see how privatization might work.
3. Will allow staff to fill vacant positions,
Disadvantages are:
1. Expenditure not previously budgeted,
2. Short term solution.
Alternative 3: Long Term Contract
This approach looks at privatization of solid waste and curbside collection over a 3-5 year
period. Indications by Republic Waste were that this is really the only way they could
make a competitive proposal. They further indicated that exclusive of administrative
cost, they could propose a rate range of $14.00 to 15.00 per customer per month. This is
based on the City of West University Place having one employee handling daily
complaints, the city handling billing and payment collection. By keeping the monthly fee
near the current rate, it could accommodate the administrative cost. Below is a financial
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City Council Special Session, February 10, 2005
projection of this approach. Those areas where no costs are anticipated would be born by
the contractor.
Alternative 3 Projection:
2005 2006 2007 2008 2009
Personnel 91,495 94,240 97,700 99,980
388,750-
Tipping fees
150,000 ----
Operating costs
50,070 ----
Equipment costs
-10,000 10,000 10,00010,000
Capital outlay
35,000 ----
Administrative costs
215,000 190,000 200,000 200,000200,000
Contracted disposal 837,900837,900
225,000837,900837,900
Total Costs
1,063,820 1,129,395 1,142,140 1,145,6001,147,880
Revenues
Current revenues
940,000 940,000 940,000 940,000940,000
Rate increase - $0.50 32,70032,70032,700 32,700
-
Rate increase - $0.50 32,700 32,700 32,700 32,700
-
Recycling revenues
125,000 125,000 130,000 130,000130,000
Other revenues
10,000 10,000 10,000 10,00010,000
1,075,000 1,140,400 1,145,400 1,145,4001,145,400
Net Revenue 3,260 (200) (2,480)
(Expenditure) 11,180 11,005
Fund Balance Beginning
207,890 219,070 230,075 233,335233,135
Fund Balance Ending
219,070 230,075 233,335 233,135230,655
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City Council Special Session, February 10, 2005
Advantages:
1. All activities handled by the contractor,
2. Possible cost savings,
3. Reduced liability and other associated cost,
4. Eliminates solid waste vehicle storage from the City?s center
Disadvantages:
1. May not be acceptable to citizens,
2. Extreme capitol cost to restart, if not accepted,
3. Totally dependent on a good contract and administration of same.
Additional Information:
An alternative for Council to think about is a reduction in the number of curbside
collection days to one day per week garbage, one day per week yard waste, and one day
per week recycling collection. This service could be provided with our current staffing
level along with the two budgeted truck purchases. The city could be divided into five
equal parts with all services being provided on the same day. Further investigation will
allow detailed analysis of cost projections.
Advantages:
1. Possible reduction in the number of employees,
2. Could be more cost effective.
Disadvantages:
1. Reduced number of collection days,
2. Fewer employees to provide clean up assistance after a major storm event,
3. Would require residents to store solid waste for up to 7 days at a time.
Staff recommendation:
Because we are currently under staffed, the most expeditious solutions would be:
1. Approve the contract with Republic Waste, allowing an evaluation of the
private contractor, or
2. Based on the recommendation of the Recycling Board, authorize the city staff
to proceed with the purchase of two rear load trucks, as approved in the fiscal
year 2005 budget.
After discussion of this item, the City Council agreed to Alternative 1. The City of West
University Place personnel will continue to operate the Solid Waste Collection for the
City with full time and temporary employees and will purchase two rear load trucks.
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City Council Special Session, February 10, 2005
Intergovernmental & Infrastructure Issues; Staff or Council Report.
Matters relating to intergovernmental relations and agreements including negotiations,
extra jurisdictional meetings, regional issues, Interlocal Agreements with the City of
Southside Place, Metropolitan Transit Authority agreements, infrastructure projects,
drainage, flooding, Kirby Drive construction, Center Point Energy Entex, gas rates and
coalition, City owned properties, potential purchase of property, City Center project,
streetlights, railroad quiet zones and task force, board and commission liaison reports and
related matters. This may include report(s) from staff and reports and directives to staff
from Council Members.
No reports were given at this meeting
Adjournment.
With no further business to come before the City Council at this time, a motion was made
by Council Member Farley, seconded by Council Member Segal, to adjourn. The
Council meeting adjourned at 8:45 a.m.
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