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

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2 r , One Supervisor One Inspector Three Solid Waste Equipment Operators III Four front-loading garbage trucks Two side-loading garbage trucks Two pickup trucks In addition, the Town maintains two 30-yard compactors in the 100 block of East Franklin Street and pays the disposal fees for the compactors and roll off containers at Michael Jordan's restaurant, Big Fraternity Court, Meadowmont apartments, Sheraton Hotel and Carolina Brewery. The total cost of commercial operations in fiscal 2000-2001 was $977,000, independent of program revenues. Disposal costs represented 57% ($557,800) of total commercial expenditures. This is the most recent fiscal year for which we have complete audited fiscal data. A Council member requested that we present total costs associated with commercial service, including administrative overhead. These data are all inclusive as requested. DISCUSSION The following options are presented for the Council's consideration: • continue present system, using no fee for basic once weekly collections and established fees for additional services (status quo) • continue present service, with fees for all collections • eliminate commercial collection We also considered a fourth option involving use of a private vendor, either by contract or through franchise arrangement, for commercial services, but do not recommend it for two reasons. First, there likely would be few, if any, cost advantages relative to the tax rate. Instead of using general fund revenues to pay for Town resources, we likely would have to pay an equal or higher amount to a private company. Second, with Town crews providing the service, we have direct control over its delivery. Under a private contract or franchise arrangement, our control would be less direct because private labor and trucks would be used. As we understand it, case law in federal courts holds that local governments cannot dictate through franchise agreements disposal sites for waste. As long as a local government is contracting for its collections (so the contractor is performing the function for the government), disposal sites may be designated. If the contractor is merely franchised, without respect to whatever other franchise limitations may be affected, then the disposal site cannot be designated. Attempting to designate the disposal site of a franchised collector is considered in violation of the commerce clause of the U. S. Constitution and is called "flow control".