Agenda - 04-29-2002 - 3b - Laserfiche WebLink

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i AGENDA#3b BUDGET WORKING PAPER TO: W. Calvin Horton, Town Manager FROM: Bruce Heflin, Public Works Director SUBJECT: Commercial Garbage Collection DATE: April 24, 2002 This report discusses the impacts of continuing service and elimination of service for collection of commercial solid waste. SUMMARY OF OPTIONS Option 1 —No change—continuation of basic once weekly collection at no fee and use of fees for additional services. The Manager's preliminary base budget estimates for next year are based on no change in service. Option 2 — Add fees for all services to present commercial refuse collection services using fees for all services. Net estimated savings in fiscal 2002-03: $390,000. • Based on departmental cost of about $980,000 in base budget request for fiscal 2002-03 less estimated revenues of$390,000 from fees for all commercial service. The new fee for basic once weekly service would start October 1, 2002. Option 3 - Eliminate Town collection of commercial refuse. Possible savings in General Fund in fiscal 2002-03 up to $830,000 (combination of cost saving and revenues from sale of assets) • Based on reduction of personnel and equipment costs starting October 1, 2002, and loss of estimated revenues totaling $67,500 (for nine months) from existing fees for extra commercial service. BACKGROUND As part of the budget process last year, the Council adopted a modified fee system for garbage collection that became effective October 1, 2001. Currently the Town of Chapel Hill provides commercial garbage collection (defined as dumpster collection) to businesses, apartments and selected condominiums/town-homes. The basic service is once weekly pickup at no fee, with optional additional collections for fee(s) based on the number of containers and frequency of collection. There are currently 750 total containers, of which 645 are serviced by front-loading trucks and 105 by side-loading trucks. The commercial operations consist of the following resources: