STAFF REPORT

Operations Committee, April 30, 2008

Modify Curbside Recycling Collection to Every Other Week using Roll-Out Carts (PWUT08-28)
Consideration of modifying the existing recycling collection program to a roll-out cart program collected every other week

Speaker:  Mike Bajorek

 

From:  Stephen J. Brown, P.E., Director of Public Works and Utilities
Prepared by:  Mike Bajorek, Public Works Director
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

REVIEW

The conversion to a curbside commingled recycling collection system (November 2006) along with the proposal in the FY 2009 budget to add chip board, junk mail and phone books to our program, provides a unique opportunity for the Town to review and potentially modify its current recycling collection program.

The Town currently provides once a week, curbside commingled recycling collection service to 39,000 households. Citizens are required to place their material at the curbside in Town-issued 18-gallon recycling bins.  Should a citizen need a second bin, they are available for purchase at $7 each.  At this time, staff estimates 25% of our customers, each week, put out more than one bin.  With the proposed new materials in FY 2009, staff believes this percentage will increase to about 35%.

The single stream, commingled collection system has proven to be very effective.  With the current materials, one driver collects from 850 households per day.  The division currently employs 18 people.  With the new materials proposed in the FY 2009 budget, routes will be reduced to 650 households per day with temporary collectors added during peak collection times.  This would bring the recycling work force to 22.

AUTOMATED RECYCLING COLLECTION

With the proposed addition of three new commingled recycling trucks due to the anticipated tonnages from new materials (junk mail, chipboard, and phone books), staff, at the request of Council, reviewed the feasibility of implementing an automated recycling collection program.  Cary’s automated garbage collection has proven to be an extremely effective way to collect household garbage.  Staff took the lessons learned from the garbage collection transition and developed a recycling program which takes advantage of many of the key elements of our current garbage collection program.

Specifically, the proposed automated recycling collection program in Cary would include the following services:

• Residents to use a Town-provided blue 65-gallon roll-out cart
• Recycling collected the same day as garbage and yard waste, but every other week at curbside
• Carts collected with special automated trucks requiring only an operator
• Call in service, at no charge, for residents who forget their collection day
• Residents, upon request, can switch to a larger 95-gallon cart at no cost once program is fully implemented
• Townhomes and condominiums will receive every other week curbside service utilizing their existing 10- to 18-gallon bins

No change would take place for other solid waste services

• Garbage collected weekly on the same day as recycling
• Yard waste collected weekly on same day as garbage
• Call in collection for used motor oil and computers – no charge
• Call in collection for extra bulky trash/appliances – fee

The attached pictures illustrate the size difference between the existing 95-gallon and 65-gallon roll-out carts.  The recommended 65-gallon cart for recycling would be blue. (front view, side view)

The following table provides information on a sample of the few North Carolina municipalities that provide recycling services utilizing roll-out carts.

Table 1

¹ Fuquay-Varina data is based on proposed program going before their Council April, 2008.

Table 2 – Cost comparison of commingled collection with bins versus every other week automated collection with roll-out carts.^2,3

Table 2

²Cost Comparison Assumption – Implementation year - FY 2009 - is calculated as if both the existing program with added material and the automated program were in place July 1, 2008.

³Costs include regular personnel, (excluding Division Manager and Operations Coordinator), temporary personnel, benefits, workers compensation, operating costs, roll-out cart purchases, capital purchases, sale of existing recycling trucks (at $55,000/truck), and proceeds from sale of material. Costs are not adjusted for inflation.

Implementation Schedule:

Staff recommends funding for new automated trucks and roll-out carts be included in the FY 2009 budget. 

·        Automated trucks will be ordered in July 2008 with an estimated delivery date in March 2009. 

·        Existing trucks will be sold in early FY 2010

·        Carts will be ordered in December 2008 with an estimated delivery of March 2009

·        On average, four to five thousand households can receive carts per week.  Cart deliveries begin as trucks are placed in service. It is estimated all households would receive carts by June 2009

o      Similar to the automated garbage implementation, cart distribution will follow existing route configuration.  This will enable the curbside program to be initiated in all geographical areas of the Town and reduce driver positions incrementally.  This will provide the opportunity to more effectively respond to the needs of the displaced workers.

·        Once a household receives a cart, they will be instructed to start using the cart for recycling and receive information about the new materials (junk mail, chipboard, and phone books) accepted by the program

·        Similar to the automated garbage implementation, requests for different size carts will be honored after the initial cart distribution has been completed. 

Advantages:

·        Cost reduction: While implementation is capital cost intensive, the payback period is approximately four and one half years with annual operating savings estimated to be $613,565. This is primarily due to a reduction of personnel, going from 24 to 13 FTE’s.

·        Employee safety: While our current system is highly efficient and productive, there have been several workers compensation claims since implementation.  They include carpal tunnel, torn ACL, and disc damage.  Additionally, with the challenging work load, all employees have experienced fatigue at some point this year.

·        Additional Materials: Going to larger roll-out carts will allow for more materials.  Recently, Council approved the addition of junk mail, chip board and phone books to our curbside collection program.  Roll-out carts will give residents enough capacity and eliminate the need for second and third bins.

Challenges:

·        Storage of second cart: The most vocal complaint during the implementation of the automated garbage service concerned the size and lack of room for storing the cart.  We found that many residents kept their trash cans in their garage or in a small area behind their house.  Delivering a second cart may create a hardship for residents without ample storage space.

·        Every Other Week (EOW) Collection: EOW collection schedule can be confusing to residents.

·        Pie Shaped Lots: With 1,400 cul-de-sacs, there are many pie shaped lots with limited frontage.  With the delivery of the garbage roll-out carts in the fall of 2005, numerous complaints were received from residents not having room for their cart, yard waste and recycling bin without blocking mailboxes or putting them on their neighbor’s property.  An additional roll-out cart will magnify this concern.

·        Increased potential for odor and insect concerns: With EOW collection, the potential exists for odor and insects, particularly in the warmer summer months.

·        Reduction in Workforce: Staff anticipates reducing the workforce by eight people in the division.  A vigorous attempt will be made to place employees into vacant positions throughout the organization. 

·        New Trucks will Require Drivers to Obtain CDL License: Currently, three drivers out of 15 in the division have their commercial driver’s license.  We have offered extensive hands on training and classroom instruction to employees to help them pass the requirements for CDL.  Unfortunately, we have had limited success with these efforts.  If they are unable to obtain a CDL, there may be more employees subject to a reduction in force.

·        Contamination: Going to a larger and closed top container adds a different element than we have been exposed to before - contamination.  In the past, Town crews have always seen what is in the recycle bin, leaving inappropriate material behind with a tag.  The Town has historically received top dollar for our product because our material has been so clean and free from contaminants. 

·        Decline in Participation: Because of space limitations and program confusion, staff believes the Town could experience a slight decline in resident participation. 

·        Sale of Existing Vehicles: The financial analysis anticipates selling 10 of our existing recycling trucks at $55,000 each.  While the trucks are only two years old, finding a buyer at this price is uncertain.

COLLECTION ALTERNATIVES

·        Weekly Automated Recycling Collection

• Residents to use a Town-provided blue 65-gallon roll-out cart
• Recycling collected once a week at curbside
• Carts collected with special “automated” trucks requiring only an operator
• Call in service, at no charge, for residents who forget their collection day
• Residents, upon request, can switch to a larger 95-gallon cart at no cost once program is fully implemented
• Townhomes and condominiums will continue to receive weekly curbside service utilizing their existing 10- to 18-gallon bins

No change would take place for other solid waste services

• Garbage collected weekly on the same day as recycling
• Yard waste collected weekly as same day as garbage
• Call in collection for used motor oil and computers – no charge
• Call in collection for extra bulky trash/appliances– fee

Table 3 – Cost comparison of commingled collection with bins versus weekly automated collection with roll-out carts.^1,2

Table 3

¹Cost Comparison Assumption – Implementation year - FY 2009 - is calculated as if both the existing program with added material and the automated program were in place July 1, 2008.

²Costs include regular personnel, (excluding Division Manger and Operations Coordinator), temporary personnel, benefits, workers compensation, operating costs, roll-out cart purchases, capital purchases, sale of existing recycling trucks (at $55,000/truck), and proceeds from sale of material. Costs are not adjusted for inflation.

·        Advantages:

• Employee safety: Same as proposed alternative
• Additional Materials: Same as proposed alternative
• No reduction/change in collection frequency: Citizens will continue with once per week collections
• No need for a reduction in force
• Reduced odor and insects concerns: With weekly collection and a closed container, odor and insect attraction concerns would be substantially reduced from current system

·        Challenges:

• Storage of second cart: Same as proposed alternative
• Pie Shaped Lots: Same as proposed alternative
• New Trucks will Require Drivers to Obtain CDL License: Same as proposed alternative
• Contamination: Same as proposed alternative
• Decline in Participation: Same as proposed alternative
• Sale of Existing Vehicles: Same as proposed alternative
• Most costly alternative

·        Monthly Automated Recycling Collection

• Residents to use a Town-provided blue 95-gallon roll-out cart
• Recycling collected once monthly, on their respective collection day
• Carts collected with special “automated” trucks requiring only an operator
• Call in service, at no charge, for residents who forget their collection day
• Residents, upon request, can switch to a smaller 65-gallon cart at no cost once program is fully implemented
• Townhome and condominium residents will have an option to purchase an extra bin to supplement their existing 10- to 18-gallon bin and receive monthly curbside service

No change would take place for other solid waste services

• Garbage collected weekly on the same day as recycling
• Yard waste collected weekly as same day as garbage
• Call in collection for used motor oil and computers – no charge
• Call in collection for extra bulky trash/appliances– fee

Table 4 – Cost comparison of commingled collection with bins versus monthly automated collection with roll-out carts.^1,2

    Table 4

¹Cost Comparison Assumption – Implementation year - FY 2009 - is calculated as if both the existing program with added material and the automated program were in place July 1, 2008.

²Costs include regular personnel, (excluding Division Manger and Operations Coordinator), temporary personnel, benefits, workers compensation, operating costs, roll-out cart purchases, capital purchases, sale of existing recycling trucks (at $55,000/truck), and proceeds from sale of material. Costs are not adjusted for inflation.

·        Advantages:

• Employee safety: Same as proposed alternative
• Most cost effective alternative

·        Challenges:

• Larger cart: A larger cart (95-gallon vs. 65-gallon) would be recommended due to the frequency of the service
• Storage of second cart: Same as proposed alternative
• Pie Shaped Lots: Same as proposed alternative
• Once a Month Collection: Monthly collection schedule will be very confusing to residents. 
• Additional Materials: Addition of new material will be limited due to capacity restrictions between collections
• Contamination: Same as proposed alternative
• Increased potential for odor and insect concerns
• Potential need for additional recycling cart
• Decline in participation: Same as proposed alternative
• Sale of existing vehicles: Same as proposed alternative
• Largest Reduction in Workforce: Staff anticipates reducing the workforce by 16 people in the division.  A vigorous attempt will be made to place employees into vacant positions throughout the organization
• Capacity and storage concerns for multi-family units given the smaller sized bins and receiving monthly service

Townhome and Condominium Collection

An area of concern for service provision is condominium and townhome residents.  This is particularly cumbersome with dwellings of five and six attached units.

Currently, the Town picks up an estimated 5,000 multi-family units. Multi-family participation in our curbside program is substantially lower than a single family detached community.  In addition, those who participate, on average, generate less volume.

Multi-family communities are currently provided with recycling bins that range from 10- to 18-gallons in size.  Staff recommends these communities continue to use bins and in order to reduce confusion, receive the same frequency of service as other customers.

Table 5: Cost comparison of multi family collection frequency.^1,2

Table 5 

¹Costs include regular personnel, vehicle maintenance, and vehicle depreciation. Costs are not adjusted for inflation.

Late Set Out Alternative: Included in the every other week (EOW) and monthly collection alternative is $40,000 per year for an employee to respond to late set outs.  In addition, one of the existing recycling trucks would be kept in service at a loss of approximately $55,000. 

Should the committee decide not to provide this level of service, these funds would be deleted from the program costs.

Focus Group Results: Questions concerning resident’s attitude toward the automated collection of recycling material and changing the frequency of collection were asked to the biennial survey focus groups.  We anticipate a summary of their responses will be available at the committee meeting.

Fiscal Impact: Program changes outlined above requires additional funding of $3,700,000 in FY 2008 as detailed below:

Vehicles $1,880,000

Roll-out Carts: $1,820,000

Total Fiscal Impact: $3,700,000

However, should this be approved, funding of $552,000 can be omitted from the FY 2009 Recommended Budget, since the purchase of four new recycling trucks will be replaced with this purchase. Additionally, staff anticipates future cost savings from the implementation of the recycling program changes outlined in this staff report.

Staff Recommendation: Staff recommends Town Council approve the implementation of a more cost-effective recycling program as outlined in this staff report and approve the appropriation of $3,700,000 from the FY 2008 General Fund fund balance to the General Government capital project entitled "Sanitation and Recycling Truck Replacement" for the purchase of eight automated recycling trucks and approximately thirty-five thousand roll-out carts.

Specifically, staff recommends utilizing an every other week automated recycling collection program.  The recommended program includes:

o       Residents to use a town provided blue 65-gallon roll-out cart

o       Recycling collected every other week at curbside

o       Carts collected with special “automated” trucks requiring only an operator

o       Townhomes and condominiums will receive every other week curbside service utilizing existing 10- to 18-gallon bins

This recommendation is based on staff’s focus on providing cost-conscience service alternatives. However, as the report identifies, there are several “Quality of Life” issues associated with this modification that requires the Committee’s consideration.