SWAG agenda 082514 - Laserfiche WebLink

Browse Search

Comprehensive Review of S olid W aste Collection and Disposal Options v2.1 69 10/22/12 5.0 SOLID WASTE COLLECTI ONS PROGRAM EVALUATION OF OUTSOU RCING 5.1 DECISION FACTORS With increasing budgetary pressures, many municipalities like the Town of Chapel Hill are evaluating potential solid waste program changes to reduce costs (e.g., elimination or changing certain service levels, increasing service fees, or changing disposal locations) and the feasibility and cost-effectiveness of outsourcing select functions such as solid waste collection. A review of published resources describing municipal solid waste services throughout North Carolina reveals a mix of both government-provided and outsourced solid waste collection services. The decision to self-perform versus outsource solid waste collections is complex, and must consider costs as well as the following intangible factors:  Continued level of service and control;  Impacts to Town employment;  Impacts to waste reduction and recycling goals;  Community pride and public perceptions;  Organizational values; and,  Ability to respond to technological, regulatory, and socio-economic changes. Evaluating the changes to the Town’s cost structure from outsourcing or eliminating certain services (e.g., commercial collection) is relatively straightforward. Various sections of this report present economic analysis of the current solid waste program, and alternate scenarios describing potential changes in service levels (e.g., 3-day versus 2-day per week residential collection routing, commercial collection scenarios, PAYT, organics diversion, and direct hauling to various transfer stations or landfills). The Town maintains excellent historical records on the costs it incurs for providing solid waste collection and disposal services, including salary and benefits, supplies, operational and maintenance costs (e.g., fuel, oil, consumables, and repair), contracted and equipment replacement costs, and annual capital requirements for new equipment. With each scenario, cost changes to the system can be estimated and long-term cost impacts evaluated. However, assessing how much a contractor would charge the Town to provide a similar level of services is more difficult, and requires a public bid to entice a contractor to provide this information for purposes of comparison. Comparisons with other similar sized municipalities that have outsourced solid waste collection services can be made, but each municipality is unique with respect to its geography, road conditions, mix of single-family and multi-family residences, disposal market conditions, median income levels, the types and levels of service provided, and how the solid waste system is funded (i.e., fully funded by user fees, partially funded by user fees with balance through the general fund, or whether the collection contractor bills residents directly; see Section 5.4).