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Home My WebLink About1994-05-23 94-246 ORDERData yY" 5`23-94 Itmn No. 94-246 mLLSR; Directing the City metra a to No agar Item/Subiem: Psivatisatlm of Rssfdential Waite ( 11ecticn Responsible Department uty CommentaN: dhe lh'ivatiaetion Damissim. in its finei reit that Ue City investigat alte :ves to tte public collection of reaitlaRi c waste fn the Citi en Bongos. die Cam tli also x'matatl that some City cocattm be given f possibly splM a the Citi with half s ai io City tollstim mtl a s vmte. M RFP �s issued for psfvete collectim which srysafed ptcpoasls far full isivate collection as sell as partial mllatim. ' ghe acct resF siva pmpoe al ase xaeivetl fxuu sawyer&tvix®vaRal. Saaper's psopol l offexa9 th altemativas: full collectins: partial collection; and full collection with an autmated syatem. TTese proposals vena than caps e i with tha dixecY caste essuciataa with City pmvddai collection, i.e., tae actual mgtente adaich me would anticipate elimirating Ex® the tedget it collection as contmc W. ggLLs aselYsis irtlicated that the cent of a direct casts as soc ia t e d wsir tl ce City tdxobevid^`4n^^^t"his saerthcee .sans m tpe g9e Filarce C ttee xe riasrd this } } el m several occasime '1'ha. lbmiittee =ccenerrls that isivatizeticn of this sexvdce net tie pnsuai at this tiam sirae it dose rot apparr to pmvlde uCi with any, acnul budget savim3s. the ailached Order, if adcpt , could t¢iml 1 cu sat efforts M xaviav Privatiaatim of gaxOvge mtlo-r .... to a clma. Deeartmem Heed Managei s Comments: f+ A Doted Infonretion: � lhf�il Budges Approval L Fiwee Di ,w Lapp Approval: I cur soeot" PU Introduced For Opasuge ❑ First Reading NO —Of L) Referral 94-246 n gipan w C unNor (s titu P) .,v CITY OF BANGOR MT 94-246 Meipmd to CouncJn. Blanchette May 23, 1994 CITY OF BANGOR (TITLE.) (Dri12r Dixect+ng. tha city MBt N Lao l�Sa6 privatisatlmn of Rsidaaial Fleafe Ccdl ByW 04 Conaz(! aftdv isfY efeaaanr: ORDERED, TUT wnaaens, that p ivatfzatiuv mmiiseion xecammrled Drat tls city mvalda: Contacting for xeida tw prLzge collectfoe aexvices; and v> a xegcatat for a proposal emit sutsequakly issuei and xespouees N this In itl analyzed: aid w�VEIS, based on this mialyais. .azitireg fare gallaws collection starvaces does vvt appear w paovide for a4'dixect reduction in the City's budget for Nie service; anti vummfS, the service cua ly ptovided by that Clty aPPaus N ptxx'iUe an acceptable latel of service edN foe cuaTmex Coffpaay..ta; M(W, ME w QmO+® w = C pA6iCII. w T CPM @' fl4la[M, •time: i city yma pr is dies:' i w no ionu lutsue privatizatfou of xesidential r A:o collsction at this Live. 'Rae t5snagax is further aut;orized to notify tip various ctgavfzaticne Nat xsspontl N tie taynest fou prcp a that the City does rot cuxxaRly intend to agar Into a wn[xxY. IN CITY COUNCIL' Nay 23, 1994 Notion to Table Until Future Meeting and Council to hold Wo shop. �/ ^ CITY LM e( 94-246 ORDER Title, Directing the FSFy. Manager to No Lancer Pursue Privatization of Residential Waste Collection. ...................................... In City Council September 12,1994 4q/,....//L Patrick StrauCounciM1, GeneralSeptember Manager12,199 GL(�6C 'ti -f.0 1'�LfAa-N of Sawyer Rnvfxoemig Service AoeJ to r ranted to go on record as saying n \� at the City's request and Independent f �QCy Financial review was conducted of Cowcilnan curbside collectionservices and the savings to the City through privatization, was determined to be between $145,000 and $358,000 "or a five year period Tabled consider next meeting vote 6 yes 3 n voting yes Baldacci, Blanchette, Shubert. Soucy, Sullivan, Tyler Councilors voting No Cohen, Popper, Stone�/s�•�� 4[l� IN CITY CCOUNCIL September 26, 1994 Richard Robinson, Bnagor Resident - Questioned if each individual citizen would have to pay for fresh pick-up? City Manager Barrett explained that there Is no way of determining. this. It could happen whether or not privatization takes place. Vote to Amend by Substitution Passed as amended by Substitution Vote: 5 yes, 3 ne, t absent Councilors voting yes: Cohen, Poppet, Soucy, Stone d Tyler Councilors voting no. Baldacci, Blanchette, a Sullivan 0 Councilor MaeeC Shubert $ cI t An 94-246 'II A. I hove completed a resiew of the proposals received for privatising the ON rubbish collection. The lowbidderwas Sarwer EnvimmnenW Services. A summary of the Bid and 2 alternates proposed are amached to ID6 memo. The cost of the service for the @.e ceras proposed as S 1,239.300. There no prosisian in the Contract Agreement, for an inflationism adjustment (CP143q in the labor porion of the Contract during the last three years. This could add an additional S 11,620 to she total cast of the collection lassmrws a 35°n animal adjustment). The OWS rest for collation during 1994 will Intal about $279,000. based on a projwfion of the fust u� months cost This particular figure is made up of Ialwr - S121:700. Fringes - S 52,900. Equipment cost - S 104.900 aid materials - 5100, five full years of collection arized ( Fiscal 1989 through and andmding Fisoa11993) and used In project cows for the rmnfive year period covered in the bid. There was an increase of 16O6 80 ower she last four veais off ac period reviewed. Fm ds purposes of comparison we Aare assumed that there will be a 5so increase m the One costs of collection. on an annual basis, for the next five vear. Tine total cost of this pmjectiocbar the five year periods S 1.903, 100, At fast glance the Pinions difference in the totals would make the Privatization seem am ativc. Theis arc some things winch would have to be considered in addition to the numbers reported above. The Minor Pool lease of equipment to tits Public Services Division. and to the Sanitation Invision is governed by the operating costs of the Minor Pool. Eliminating the three Rubbish packets would remove some Poponeibilim from this Division for mainraiNrg their, and sirc in material testa and repair Pam- The net savings to the Motor Pool and ultnew1v the Public Se ons Division :could ims be in the range of S 26.430, in. 1994 dollars. This fcure is taken from the evaluation aerarmed by Ted Corbell on the cwt of open -,tura the Publish Packets, vs. pmnfmtion. and Presented in a motm to Bob Fewer. dated April 3, 19.91. Br Com orient the Motor Pool chavzes for the Saturation Division for FY -1994 more S 104,00. If borhlhe swings and Motor Pool toss are protected cover the nen five Year; with a 5 %.mnual increase the savings could total about S 146, IN. nine the cost athe Motor Pool charms, for the same period would be about S 603,300. The dlfforence. S 457,200 remains an operational cost that cannot be deleted by the Motor Pool and which milli be redheaded to the other Divisimts within me Public Somers Division. as the la gest Prot of die Motor Pool fleet services. The Rubbish collection operation is supplemented on one the (Lpednesda)) per week be a dupe man crew fiom the Highway Division. The eleven holidays per vear also require fie additional crew from FiShway as tsall as the third truck to complete the collection. The employees used are; one HEO 1, and nvo Labovers. The hourly rate for this crew is about S 25.37. The standard 4 hour day will require about S 203 in labor and another S 85 in Prange cess. There am 52 in rhr10 noGdayc on on ipin tone and two Holidays per yxar MemoPandum PR,s To: E Baran �9 From: Arthur A. Sixtus Dam: 04/2&1994 - ':- Wpla Subject Ru66ish collecnan privoazanon I hove completed a resiew of the proposals received for privatising the ON rubbish collection. The lowbidderwas Sarwer EnvimmnenW Services. A summary of the Bid and 2 alternates proposed are amached to ID6 memo. The cost of the service for the @.e ceras proposed as S 1,239.300. There no prosisian in the Contract Agreement, for an inflationism adjustment (CP143q in the labor porion of the Contract during the last three years. This could add an additional S 11,620 to she total cast of the collection lassmrws a 35°n animal adjustment). The OWS rest for collation during 1994 will Intal about $279,000. based on a projwfion of the fust u� months cost This particular figure is made up of Ialwr - S121:700. Fringes - S 52,900. Equipment cost - S 104.900 aid materials - 5100, five full years of collection arized ( Fiscal 1989 through and andmding Fisoa11993) and used In project cows for the rmnfive year period covered in the bid. There was an increase of 16O6 80 ower she last four veais off ac period reviewed. Fm ds purposes of comparison we Aare assumed that there will be a 5so increase m the One costs of collection. on an annual basis, for the next five vear. Tine total cost of this pmjectiocbar the five year periods S 1.903, 100, At fast glance the Pinions difference in the totals would make the Privatization seem am ativc. Theis arc some things winch would have to be considered in addition to the numbers reported above. The Minor Pool lease of equipment to tits Public Services Division. and to the Sanitation Invision is governed by the operating costs of the Minor Pool. Eliminating the three Rubbish packets would remove some Poponeibilim from this Division for mainraiNrg their, and sirc in material testa and repair Pam- The net savings to the Motor Pool and ultnew1v the Public Se ons Division :could ims be in the range of S 26.430, in. 1994 dollars. This fcure is taken from the evaluation aerarmed by Ted Corbell on the cwt of open -,tura the Publish Packets, vs. pmnfmtion. and Presented in a motm to Bob Fewer. dated April 3, 19.91. Br Com orient the Motor Pool chavzes for the Saturation Division for FY -1994 more S 104,00. If borhlhe swings and Motor Pool toss are protected cover the nen five Year; with a 5 %.mnual increase the savings could total about S 146, IN. nine the cost athe Motor Pool charms, for the same period would be about S 603,300. The dlfforence. S 457,200 remains an operational cost that cannot be deleted by the Motor Pool and which milli be redheaded to the other Divisimts within me Public Somers Division. as the la gest Prot of die Motor Pool fleet services. The Rubbish collection operation is supplemented on one the (Lpednesda)) per week be a dupe man crew fiom the Highway Division. The eleven holidays per vear also require fie additional crew from FiShway as tsall as the third truck to complete the collection. The employees used are; one HEO 1, and nvo Labovers. The hourly rate for this crew is about S 25.37. The standard 4 hour day will require about S 203 in labor and another S 85 in Prange cess. There am 52 in rhr10 noGdayc on on ipin tone and two Holidays per yxar 94-246 14. (Thanksgiving and the day after) which require overtime pay. In addition there ere about another 3.5 days of oven'nne associated wsih the Holiday consonant due to the two days of collection being Performed. Dris puts the Highway contribution to the Sanitation Division at about S 14,260 in Labor and S 5,970 in Fringes, or S 20,230 in the FY 1994 budget These cosh cannot be saved if prhan,ation occurs. The wages and hinges will so be paid out of the highway Division budget. Using the 5 %figure noted for the proposed CAN projections the five vans of the bid will represent a total of S 117.300 in labor and fringes that have been projected that will not be mod if the contract for collection is awarded to Sawyer. A table summmizing the savings to be realized with privatization has been allached to this letter. Thele will, after fivs years be addition.L casts of about $ 27,000 to pursue penalization. which makes either option about equal as this force ittements only a 2 %difference in the operating costs. The first year impact on the budget will not be restricted to the Salutation Division but will she impact the FEghwav Division. as noted above. The line items affected are as follows: LINE ITEM DESCRIPTION REDUCTION INCREASE 3SJ"r SANITATION DIVISION 01 peurs'u, 02 SucphIs 0i moavrn.a. 0. Cmnu.u.ara.> 06 Eom- tit 0] Sundr'. 1132,Soot (I.SSG: :TCCt 6534x1 e�s.23o Net Red:udor. 67 M5) Tic Budgxr Re£ucat imde Saaladon Ciauon willbx reduced 6om S 1,4V,OM m S 1,350,003 a<a rearlt of P 4adv1. 5245 HIGHWAY DIVISION 01 peumml 15,A0 0d E91nwnont 81.395 F, sundr, - .;rev Fer lncraaa !02585 The Budget RNre>t for die Hlehaaa) fn'viana a mcuase from$ 2,5M.01 to S 1632505 94-246 u 1 •G, .Alternate \o. I m'ovides a auorc for 50 °'a itmat ion. TFIs will hate m be neaonartd furrher to a<Qount for holiday and \l ednc.Aay crGecdom ifdit Cin -n ro-snsiuer ie Now egwornont is needed for conraured On, collection weather we contima with all ora portion of the collection. .Aitemate No. 3 procidm a Gude for maomated collection oith side lona.zs .vd contatrery prodded to each home iabout 7,6061 Stan mtthanicnl dumping capa Y,liin ttuec!tao_a-fib a= suhmt to mi trdlaticnar)' adlusitil t(CPR'.%)far rt:e labor portion of the bid. ff 4,s assnmcd that the nm cul be areurd 3.5 to flat darw }anrs cf:ha lease Lid ,1oulu be un'sazred-.-r,th an h:crzasu of aimu: S I L. 15. Apri11994 Sawyer Envirrnmrmtal Services Rubbish Collection Proposal Purnav Bid alternate #1 Altemate'.2 Bid Bid Bid Year labor Total labor Total Iabor Tota I ?35.]]3 120,100 235,773 24L66S 123.103 221,794 3 107,954 247,710 56.200 126}81 51,368 2'_1339 4 110.653 253.902 57,605 129,335 52,652 133;022 5 113.419 260,250 59,046 132,568 53,968 238.847 Totals 1,239,303 631,287 1.156775 .Alternate \o. I m'ovides a auorc for 50 °'a itmat ion. TFIs will hate m be neaonartd furrher to a<Qount for holiday and \l ednc.Aay crGecdom ifdit Cin -n ro-snsiuer ie Now egwornont is needed for conraured On, collection weather we contima with all ora portion of the collection. .Aitemate No. 3 procidm a Gude for maomated collection oith side lona.zs .vd contatrery prodded to each home iabout 7,6061 Stan mtthanicnl dumping capa Y,liin ttuec!tao_a-fib a= suhmt to mi trdlaticnar)' adlusitil t(CPR'.%)far rt:e labor portion of the bid. ff 4,s assnmcd that the nm cul be areurd 3.5 to flat darw }anrs cf:ha lease Lid ,1oulu be un'sazred-.-r,th an h:crzasu of aimu: S I L. 15. SAVINGS RI;AIdZEDWI'I'I l FIR.I,CONIRACP II(I SAWVI4121iNVIRONMI;NTAl. April 19'+I YEAR LABOR VIRINI IRS -110\VC hill I,QII I P. 'I'(YI'AI, SAWYER DIFFER. I.AI1flFFG, Kks h\'!:S DRPRU'l. SAVINGS Bit) 1 95 128,000 55.5011 (21 ool 9.,110 9,01no"i 197,740 235,773 38,033 '96 134,700 58;100 (22,3110) 27.760 39,000 237,560 241,668 4,108 3 97 141.,700 61,500 (23,40(ry 29,1541 39,000 247,950 247,710 (240) 4 198 149,000 64,700 (24,600) 111,600 39,0110 258,70) 253,902 (4,790) 5 199 156.8(U 69,000 (25,60111 11',Ilit 39.1100 270,140 2CA,250 (9,890) 700,200 308,100 (11? 300,) 146,00 165,000 1,212,0911 1,239,303 29,213 First year Lgnipmem depreciatimtostiniates have bon modified to rolLa the rale of OVo 411al lhlec packer; Mlh the lldrd being conva led Io a s:dt it u;L NOI PS: Fgnilnnonl dopieciabob is bawd on an average cwd list vehicle of 5 140,000 wilb a seven Ycar life. four to five Years win be spcnl as n primary 111111, Ilnoc Io lion care mill uce service as a v Anp unit and Ihrec In lime Pans will he spent as a smd mill wldcie. 'f he awvogc wive el Ow mann ial :it lite uld lit a ill year im od will bar Fo wevn S 1.00191 and S 25,0110. To be conaelvatihe lite not cowl nfthese whicles was a;;amel m be ,$ 130111111 nod pmniml oa¢f 191 scam at S 13,1100 per 3xar pet vehicle. Motion 1'(314easingalive Icpluuoumd in Ibis nllc.eked Cost llVllich omni be mtluaal win be reallocated to ower Pt is SeRtuo Divisions. A mento, allanhel, 6 o s cd ('rnlmll. dined tis 113, 1994,.oillinw lite details IeLind the t avings aoie. Ficial clnvs of l hgll\vav Pei tonocl tilled In eallaq nu lk c hlcsdYSa tall lite eleven IJolidays each year areshmvn in this Lhle.'I'heel Lcals willrtlnm lit the I irdlway DiN Well, s10m dls) (annul be deleted. � a o� BRANTNER THIBODEAU X ASSOCIATES KeY plea, • 13 Waw Hues Pon O(Bee Box 864 d? Banger. MB 0,402P864 �({o m 1 (207) 9493325 AU6: 91994 August 18, 1994 OFFICE To: Ed Barrett Bob Farrar Tim Ring Arthur Stocks Patrick Stretch From: Gerry Thibodeau Subject: Enclosed expanded draft of projections to Sanitation Department. After eviewingents and our preliminary schedule, we have prepared the. following expanded draft which includes a budgetary forma as mall as comparisons with and without cost reductions in the Highway and Motor Pool Departments. We have factored inthe need to acquire a ten year old replacement salt truck eery 3 1/3 years at a cost of $7,000, based o estimates from two suppliers. Also the budgetary approach includes the purchase of another vehicle in year three as indicated in Nr. Corbett's memo of 4/8/94. Mote that the sale of existing vehicles 1n year a for $30,000 is for two vehicles, with unit 0203 being retained as a salt truck in accordance with Mr. Corbett's memo of 4/8/94. _ 11 RRANTNER THIBODEAII & ASSOCIATES Key Pl,,, -23 Waw Saner Pose Office Has 864 Banos MP 04442 08" (307) 947-3315 HmpSpr OMR N HogW bps rynoLroCwMmu1 W'n°M'"' August 18, 1994 A Bmor. TJlwAru®Peexlms Mr. Edward A. Barrett, City Manager City of Bangor 73 Harlow Street Bangor, ME 04401 Enclosed are schedules analyzing costs and projected savings to the City resulting from the proposed privatization of MeSanitation Department. The cost of sanitation vehiclesssubstantial expenditure. The accompanying schedules a the cost of the vehicles a the five year life of the pxoposed privatization contract using two different approaches: (a) one approach measures the average actual equipment cost by spreading depreciation cost over the estimated lives of the equipment; (b) the other approach measures equipment cost as it impacts the budgetary process (cost is recognized in total when purchased). Additionally, privatization would eliminate certain requirements of the Highway and Motor Pool Departments t0 provide labor and fringe c s for the Sanitation Department. Since the City Council would separately decide whether the labor/fringe savings will be effected in the Highway and Motor Pool Departments or whether these labor/fringe savings will be partially or ompletelyassigned other work within those departments, the accompanying schedules compute projected savings using two. different assumptions: (a) that no cost reductions are effected in the Highway and Motor Pool Departments (b) that Highway and Motor Pool Department costa are fully reduced by the reduction in labor/fringes no longerprovided to the Sanitation Department. The accompanying schedules therefore, project net savings to the City over the proposed five year ontact using two different approaches with each having two different assumptions. 94-246 Edward A. Barrett, City Manager REPORT BMF! August 18, 1994 - Pa6smmM popeer oNy Page 2 MWm be MPM wknrt pmmbbn a Be mme, TbRMmu 6 Ammmm b$ In summary, the four methods project net sa inns ever a perod of five years to the City as follows: - Projected Method M Sg_jgg;_ City's equipment cost recognized as annual depreciation Assuming no cost reductions in the Highway and Motor Pool departments 1 $145,273 Assuming full cost reductions in the Highway and Motor Pool Departments 2 358,164 City's equipment cost recognized a purchased (budgetaryapproach) Assuming no cost reductions in the Highway and Motor Pool Departments 3 100,934 Assuming full cost reductions in the Highway and Motor Pool Departments 4 313,826 Please call me if you would like to discuss this letter and the accompanying data. Yours truly, BFANTNER, THIBODBPU fi ASSOCIATBS Gerald E. Thlbodeau CET/agl Encls. city of Bangor 94-246 - CVMMMIT ZATION OF PR63 ECTED 6AVING6 FROM PRIVATIZATION OF SANITATION DEPARTMENT REpGRI ORPFT dBcu9oa^paMaNY Five Year Period Fm pe�miaM b np�tAcea Mph W ThBarao D pectin" Additional Vehicle Diap... 1, Projected &vpmmt Coat of Reduction and Purchases Erving. Private In City Eliminated (Addioiorel ya ax Cancra_ costs, loo euiced) cal Matbod 1 Annual Depreciation - No Coat Redaction In Highway 4 Motor Pool Departments 1 $ 235,77 $ 238,173 $119,000 $121,400 2 241,668 246,509 - 4,841 3 251,488** 255,137 - 3,649 4 257,774** 264,067 - 6,293 5 _2644.219 a 273_ 30_9 X090 Totals $1 250_922 $1,277,195 $119000 $14_5273 Method 2 Annual Depreciation - Full Cost Reduction In Highway 6 Rotor Pool Doper en s 1 $ 235,773 $ 277,873 $L19,000 $161,100 2 241.668 287,599 - 45,931 3 251,480** 297,663 - 46,177 4 257,774** 308,083 - 50,309 52�1 ** �3 81EU 54 647, Totals $1 250_922 $11 490`086 $119_000 $35_164 Method 3 Equipment Cost Recognised Nban Purchased - No Cost Reduction in Highway d Motor Pool Depart,,, 1 $ 235,773 $ 213,57 $119,000 $ 96,800 2 241,668 221,048 (20,620) 3 251,488** 228,785 95.339+sn 72,636 4 257,774** 236,792 (7,761) (28,743) 5 264,21$** 245 080 &(19 139) Totals $11 250`912 $11 145_278 $206,578 s�10093& Method 4 Equipment Cost Ramgniaed Man Purchased - M11 Reduction In Highway 6 Motor Pool Departments 1 $ 235,773 $ 253,273 $119,600 $136,500 2 341,668 262,130 20,470 3 251,488.* 271,313 95,339.+* 115,164 4 257,774** 280,809 (7,761)*-++* 15,274 5 �9.**9�v637 .26 4111 Totals $11 250_922 $11 358_1]0 $206578 $313826 a last 4 years of reduction in City c e based on the first year adjusted by estimated annual inflation of 358. Last 3 years of private contractorcosts include a 3.5% annual incaae in labor n coats bacauaeof estimated inflation. **% Reflects elimination of swed to porch... me, rubbish truck in year 3 adjusted for estimated annual inflation of 3.5%. - **+'a Reflects coat to City of acquiring 10 year old salt truck adjusted for estimated. annual Inflation of 3.56 City o1 ganger FIRST YPwR PROJECTED SAVINls MOI PRIVASIZPTICM OP .SANITATION OEPAEMEYP additional =net of Priam aentretmr ¢eduction in city < Isometrics dapltelt label Sanitarian d'p"t,,,m fringes Mael a of feel. glttis.soil, re] parr. peal labor S fringes Hlg"ar labor 6 fringes (originally considered w be to labor) Vaaerten of .litigants Valid of etruck lm aceni ($7,000 0 tllf fans by 31/I ,) Net cmc redueelen (additional tete) eawobles (a"11.1111(a"1(a"11.1111trulk llmlilld 11 ,It k nl mCity If 1111ting ll./diepe.el/eewellatl0n of or, vehicle Tev6 t projected first t yeee ..ting, (tddm5wul cost) (23,20% City-, E9oip... t Coat city'[ E9oipv=ot coat gategni.¢J scandal 222 efd (8,033) '2,400 .mea=d. taio rro e $l2 3� "'none wu Aransas a, one =ti== tnigMap Cmetall ost ' Hi6hveyCostifi S , Mobleyl d e6 In HieYi6 Original Hot,, Pool Oept'e,o r ?,,I Dap,'. Mtot Peel 0 e t' Metee Pool papn•e, City labor & Fringe Labor Yber 6 non"be, 6 Ptinge Corporations . ate $235.313 $235 773 $235.373 $315 721 $235.773 120,000132,869 132,869 132,869 132,869. 55,500 54,264 54,264 54,264 54,264 . 26,440 26,440 26,440 26,440 1 (23,20% 39,000 26,700 Ca ]90) 222 22133 (8,033) '2,400 50,000 89 ow $(88`3 $l2 ♦ y,a cost of labor and fringes retrained to the Sanitation Departments by the Highway and rotor Pool oev rtmmts is so follows: tire HigMay De a 192 labor day. n Ehi, nick ronCLd n longer b required. w Z thio labor and frea to Cox Calibration ringe. is eppr,sieately,$21,200 in the floor year. Me into, ool Department stories, epprawiutely 2 eOf its peev0.n.1 ties on sanitation l Oapernene V a v.re mould m longer be r g.C,,d. Me cost o labor aM fringes in approximately $1B.500 in the fixe, year. 26,700 (2100) 277833 42.10) 30,OW 29 000 $16=,_100 213 573 (22,20 g 4 q 389 Do 5� $ 3 _diy £ya 9 9 3� n 21,200 253 271 17,500. 30,000 89. mO $�136500 94-246 90: i8as]r m Council Chaft arcf N®Eexs of tle City Ca u 191: FiA.azd A. HattEtt, City Na1N9eL FE: Privatization of Garbap 1 1aYdon Imo August 31, 1994 1n and to aueluam tte privatfcatfcn Proposal currvriy Lefom us, it ney be helpful to diveleped in tre Privatization m sion•s report. ghat report developed four criteria or n� to be applied to opporduSt to lrivatire existing goveawa,tal services. in what follws, I will atept to slyly these rn� to the pcopo a Defoe us. 1. 94are adsts a smatli.v based mUcfmtfm t t tle atioatiwtioe of a a ce or function will m ult soar zavi:vs on both a full artl mftrm a Cost Deals. PCCVLding tO t infO9MtlOn pravided LI tIe BtBMaBL eM Tidlad au repIl Of August 18th, to be cost savings associated wiN the pioposel. Fkmarer• TY¢ level of time ssvinp is tial to mlatai dxisigns which mist W :Code Legardim3 p� levels m our iiigiaay divisions. The fo 1ebart piesatta astimatai mvmal Cost mavirle give, various prima a 3 using both the vehicle +t.F.quxiation metivd ere9 vehicle lxrchase nEtllai5 Si = t B2nt repon. Setlll5tal PAWdl AVetavd Cat 58y11103 S1LItdtlmt Pushase Cmtzarr withut other mductione $291055 20,187 Contract with iligtaey n+'A'Y+^^= 50,000 42,000 CmrrM with liigtsay arca i4atuz 71,633 62,765 Should Ua Caurcil be inmrestai in pnsuvg a g nr p Contract, declaims nmst be mode Legardi staffLq lemis in lbtor Pao1 mid ilighmay. In over to Laalim $18,500 in pmsomal, aavi: Sn PbYot Pool, an existing full -tine uecimruc position to part-time. 4e are sono a that this may affect I4ator Pool's perfoxmuum for seaerat LaaCore. First, we believe it world be dlfffcult to Lazuit mud ramin a qualified part -tine mech . � mm• a pLtcations, ve o ata a diverse flint a pmfer £ally rn.+i; ffai nishmucs with a broad backgrrxuei. A put -time position atthvt benefits woultl lllwly not app3 to the type of aq 1we prefer. Sawn i, mrnr Fool scoffing levels Acre almady Deaf zeduced significmitly £Coco 22 fullti:m a 2 pime ®pltrya'ie m Ml to 16 £ulltive ao� m p � � inn 5. lnrther re�etfam will t�ce our flexipillty prevm ' progrmi m err ability to mspot quickly to zepair nmds. 94-246 M order to achieve $21.200 in savings here, ae would elisdnate an M 1 position aM uee a portion of the larder savings for several mxD-t simper positions. slue mjox bqa of such a change w he on cur Inter i�te.....-e Program, particelarly m plewfng. Y cuamtly mate 22 vjor Pl xcuies and o£i n £iM it difficult to staff all of i nms. loosiig m equ pm operator would imxease the froideroe of doubling rum when operators are not available. anis would be fn.rrmr ccvp tl by Us lengtl, ur of oplaty xcutss which will le xeguix Luis wind Wien wa assam 8m:1=a of Pxwvi ly State maima,.en roads — Parti =ly Ls Ho Poad axes. fihml.d we Proceed with thfs redxtiay we weuld xsguwat the Council appxwe oontxactim for several rural Play xmas as ass last dale ae4e[al yaixs ago. Tne acst at Uiat tine was approximately $28,000 for eixh a fo adiition, we sM d rote Let staffing :rc Public vnrls ]ms baa, xa�ced oxer the last few ymxs while additirnal wUc such as street minting a� sig and x 1Lg has been ass . Ore of my rmsa4s for sigportiog U:ts xevlew of conRxact gaxba service was the lupe that savings in Luis axes could be used to inexeaee higl¢ van r n.rly fn the wilrtex months. This dsas xgt appear liimly. '➢ fore, xe would xaamard agaLst additio:sl highway staff � and/or rel m adiitimal funk for cont plowing. Onder our rsceumtlatfons xegartlLg Motor Pool ami lilgt y, tbsrefore, wa world be looking at aruwal saving of $20-30,000 abmst totally due to elisuwtin9 Ue need for zepinoavmt of Please furtbex now that U.e== savings do nat xeep<es®ut annual »•a,^^= in epemtimi budgets. Our RWgets would be low in ynsns wdwxe tnclm would be bought. In other yeazs, out budget would be $20-30,000 higher. 2. 11e area under review is sue Wuexe Le CiN's aao.ationa are clearly i fficient or d ffectfve am] anus[ bs au ick v or dxamaticallv Lmxovsl. We believe Uds conll is not mm. 0 current service fs effective. Our citfaas axe satisfied and we revive few — if any __ � on servira quality. Wa leli Us e¢vloe is a good value. 3. or anti 'tion wiLuin Le ivaT estor which will insure that t City d not barna a captive aarlmt to a sirole aavider. 11w a was migietition in Ud? Ditl Pxocnss. Fess bide sere xaeivai ns follows: 5 year Coat Saw}ex ] from� $1,239,303 BFT, LVLatxlea 1,604,424 astxo wast¢ Servi s - 1,958,500 Waste Panagemnt of I.faiw 21171,000 94-246 At ttie same sae, liewevee, it etould ba toted that the paten bid Wae over 20% below T]n rext low bid. WUle hese cos will ba fired for the fust five ysrs, area bid sill to mPiixsl at tJffi eM of ills cc r ant I move s® question m to whether the bitl p-ice w1ll xaoain relatively stable at Chat point or will irr.ras I m a hvyfiat came. 1lnrefine, while there d es apprar to be m tat I � of tbec comoer. that a sigi£iemt price imxxeaso may resulx at tie eM of tM contract. 4. 19n service of £vne[ion in question can be ffi ii i in amh a xav ae to ant MMM= the ff" ' ream guals ant vel idi by cote service 'In Questlon.' ar cu¢enily comaut„rm, a Mucor cmrtxmt poses no major proM m in this ams. Fbxaaer, solid waste is a rapidly cbvg area and I anti pate further clam £n iln rex[ five laws. In _ �-t relieve t t ams foao of m atmy or iramtive rased fe.}cldmg willm., I be inquired dual y this period. Whztlnr this is a limited or corq re fee for service systav or other changes, the pmsmce o£ a private M will.i•e close ccc d nauc: fn _itemwttn changes it voce difficult for tM City to dm m fn a flexible ant resporeive way. aln pavatvatimm report also tairtu:rl on otter crosid rerun mrh as legal ant regulatory omatraints, the effect on Clty a ployzss, ad the ability to �Iop and admULLster effective vntraceab a:yraomts. of these, please mT¢ Hat contmctug for this service will regu in that the fnpact of this clang be bargained wiffi the u=on represent' V cur eubiic Wclm mplcy . p yendi:g on t}e extent of staff redo ions rnmside of ttm Saedtatiw pivlaim we m, ivaev�, believe tlat most if not all existing Sanitation mployces can be traaferrad to cmxently vacant pceitimis at Public 4br1®. Me vajor advantages of contracting frac this service aini eLmimatlon of the neat to pm ]ase garbge tr ; r ing City liability for possible self-freural Wats ' C�Uan expw a: and sem• potaRial for cost savings. are: chaziging a cervica with which ciui are ap tly well satisfied: the meed to adwdster a contract aal respond to omplaimrta -and issues dwou,gh a contractor rather than directly: the pmmtial effect m tM morale and atUl of c glcy w are doing a good job at a xeasmable coat; t n to acoxtlimate airy overall clanger in ire solid waste syarau with a t party co actor; and the difficulty of ever me ie the systm with our win forces sM we somoire or skald pricer escalate after fi } rr. Pdvarct oes T major aivantaga of a contract is tie elimination of than i to regularly nVlace gazb g trnclm. K $90,000 apime, these am major fleet rnveatnamcs. As the Caurcil is aware, our fleet replacement p ymn has been adecfarYd for a nvdm¢ of ymrs. Eliminatingtin recd- for t e melts world s®aerat adore the pressure in this arm. 94-246 Our Worio?ra' Cmpematimt risk w also be eliatiaati. While a °prmdtam° is pfd fm e h eoployao, the City is self -usurer} op m $500,000. et...td a maim injury occur, the total pr® fnclmnd in the budget vM be far eased ani additimal vests iarvnerl. This Potetueal risk would be elimermted. Finally, there would be sere cost cavi ]e. Please zrote, txaever, that itis e t of these savings depeods open actives m Fbtor Fool aWcr Rujjaay divisimt staffing levels. Witmut rerluciag these arras, the Sanitation cparati� hxlget will v,ally ircrava in tensa }sacs w vehicles are not scbtx1aled for p xx a with Aerating funds. Please also ruts that the sanitatim vehicle viltich has bent ordered was or'tsied with fleet replacerent x�exve £tads and that tae world rxmtmxl that the prmc is fran the sale of this vehicle rerun m this rosacea. Uisadvantaoea As rnti, aur citizens appear sat effnd with the cvaett quality of service. we lava m guarantee that a cemtractrr will aaintain this learel of satisfaction. cmritg the tmreition fzm City to mntrafox, it is li y that problem will ba ermntexnd as tha crncrxtor learns aatgoc's routes and Practices. - Given that ass euplo}ees are currently pmvddhg a quality service at a xa.a+ smeble price, a iw m ca¢act this service may a an tntftrrercled ressage to ver emplo} s. while this cart ba mltigat i Ourugh transferring rust or all of our eapioleas m other pceitions, we slvild be aware of the passible effect of such a decisdm. pander than di tly cmtmlling this sesrd.ce, our role will chane to crotR.r t ndmvdstvamr. Weft m if cmplaims are raoel i, We will rot ba rn a pasitfm m directly respond. parer, ve will pass the woplaint m m our cmttrmtor and deperc m a third party response. Da additimt, a M may rot nd as likely m sl x extrare lswels of fleaibility ani vesprnufvmiess in arHmssdng indivirBal ,rT,t.:m or PxWleim. Aga as mti, emndvatiat of cltanyre in the will vmsm colle:tion systan say rot ba as stc igtwe,.,.a,.,a dealing with a mntxactor as en dexs:t o tim. Smuid, far example, m eaness charge sysreia be osrm.t:ahw to collect beymd a cartaen quatuty, derect City implemnmtinn might De easier and more flexible. Finally, ahmild the City dire m ace again pwfde this service directly In the ftuuce, it nay nd difficult. pquipnent etas[ be pumiasei (either decectly m fxmi the cmtnLm) at a significant o rive mat, mployees meat be hired, and the 'sys ' aaet be leaaei o again. 'Itareftim .. fatl lam tmmt to arhiciPati. Iraa a }ascii^=[ l iM of vi ex, altlwgt it would to possible m re-enter itis service, I believe it w d be relatively tntlikaly. �cmtmdation In y oral, I ha not believe the dventsgas of cmTtractiag for this service axe sufffciart m oube the m»..=t cr Potential UisMvantagea. I xecvaend that the City tlaLs is m directly p� cal1 this service. At the sere teed, I s gtize mat this is a fairly rices call and xvld amt obis[ m proceeding wire t cwttrect so lag as the pvtaR.tal disadvantnd agas axe tavgruxnd a acrepti. SMuld the Crnscil wlah to pmc� with a c+'mtiact• I vxwld xam:om[l that 94-246 existing staffing levels in [hm i l aM Highway be ma;.w�:.w, gpuld Rjghay a fing Le xeA:csl. I would tl that fimtls be ellocat� to cmTraR for Ce2teL1 Plw mutes ttds wig in order W limit service level aWJ&