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11-18-2002 - Workshop ... ...., CITY COUNCIL OF EDGEWATER WORKSHOP NOVEMBER 18, 2002 6:00 P.M. COMMUNITY CENTER MINUTES CALL TO ORDER Mayor Schmidt called the Workshop to order at 6:00 p.m. in the Community Center. ROLL CALL Mayor Donald Schmidt Councilman James Brown Councilman Myron Hammond Councilwoman Harriet Rhodes Councilwoman Judith Lichter City Manager Kenneth Hooper City Clerk Susan Wadsworth Paralegal Robin Matusick Present Present Present Present Present Present Present Present MEETING PURPOSE The purpose of the meeting was to discuss solid waste rates. Mayor Schmidt opened the workshop by explaining the attire he was wearing, (trash bag and hat reading I got trashed in Edgewater.) He wanted everyone to know they are taking this very serious. This is a workshop for the Council to talk about the rates. They are going to speak amongst themselves. There will be no public input in the workshop. In December, they will hold a public hearing for this. He doesn't want anyone to feel they are threatened. City Manager Hooper made a staff presentation regarding what they would be discussing. Jim Shira, B & H Consultants, stated Janet Shira is here with him also. He informed Council he wanted to give them the results of research they have been doing over the past few months with regard to the Refuse Collection Fund and the state of the rates the City currently collects and what the City is looking at in the future as far as rates the City will need to be collecting. He then made a Powerpoint presentation with regard to the Refuse Collection Fund Rate Study. (Attached) Mr. Shira suggested a $3.89 increase per customer in refuse rates in order for the City to continue providing the service it currently provides. ~ ....., Councilwoman Rhodes asked if other cities pick up appliances like Edgewater does. Mr. Shira stated he wasn't sure. He thinks they do but whether they pick them up with little or no charge, he wasn't sure. Councilwoman Lichter feels there is another expense Mr. Shira wasn't including. She stated in New Smyrna Beach they hired a gentleman from the City, they hire another employee, to supervise the pickup by the private organization. She asked if this was factored in. Mr. Shira stated it probably is not. Mr. Shira then presented their recommendations if the City intends to continue collecting refuse with City equipment and City personnel. He recommended the City increase the monthly residential fee from $13.89 to $16.89 immediately. Without this increase, the retained earnings, savings account will be gone this year or next year at the very latest. They recommended the City immediately begin working on a franchise agreement for the collection of refuse from commercial, industrial and multi-family accounts. They also recommended the City limit its collection to single family residences only. Mr. Shira then presented their recommendations for the City to begin next year such as adjusting the recycling fee each year and examining the cost of complete privatization of refuse collection. City Manager Hooper spoke of losing money to the tune of $400,000. Every $1 increase in rates, gets $100,000 more into the system. He further spoke of items that are picked up by the City and people aren't being charged for. He feels there needs to be some increase in cost for people who take advantage of being able to haul off water heaters, white goods, or even an excessive amount of yard material. He spoke of tree trimmers in the City that chop trees down and pile it in the person's yard and the city hauls it away. He made mention of a $1 per year increase through the year 2007. Fifty cents out of each bill goes into an equipment fund. He made mention of the big expense that is ongoing to replace equipment such as the garbage trucks. He further commented on what other cities are doing and these cities being able to charge less due to privatizing and not having to pay for benefits for employees. City Manager Hooper informed Council it is his intent to present a rate increase at the December 16th meeting. They will also be looking at anything else they can do to capture those costs for extraordinary efforts of picking up anything that is outside the normal two bags of trash. Page -2- Council Workshop November 18, 2002 ...... ..."" Councilwoman Lichter mentioned a petition that was turned in to her with 952 signatures that represent our citizens that are saying keep our refuse department local. The gentleman who gave the petition to her will be presenting more signatures at the next meeting. She presented the petition to City Clerk Wadsworth. Councilman Hammond stated he asked for a study to see what is what. He questioned if the City is supposed to pick up commercial. City Manager Hooper informed him generally not. Usually the commercial is done by private and it's not a sole source franchise. He spoke of certain areas, which is a small amount of commercial, the City does pick up. Councilman Hammond asked how many commercial accounts the City has and how many are being picked up that shouldn't be. He made mention that he has two dumpsters and one City pickup for his business. He is paying for two and getting one theoretically free through the City and he shouldn't be. He questioned how many other people are getting it for free when they should be paying. City Manager Hooper agreed to get this number. He stated Ms. Johnson stated she thinks it is in the 400 to 500 range that the City is picking up. Councilwoman Rhodes questioned the businesses getting billed for it. They aren't getting it free. Councilman Hammond asked if there is a Code that if you have a business you are supposed to have a dumpster. City Manager Hooper informed him no. All new site plans are having dumpsters but there could be some older businesses that do not or have not been required to. They are paying the city's rate to haul it away or paying a rate from the many other franchise haulers. Councilman Hammond asked City Manager Hooper to explain what a tipping fee is. City Manager Hooper explained it is what somebody pays when they go to the County landfill. This cost has gone from $30 per ton to $34 per ton. Mayor Schmidt asked when the City had its last increase. City Manager Hooper informed him 1996. It appeared it had gone up 10% at the most. Councilwoman Rhodes asked about the County increasing their tipping fees this last quarter. She asked about the cost for the large increase in expenses from 1999 to 2000. Mr. Shira stated he believes that was a large equipment purchase year. Page -3- Council Workshop November 18, 2002 ...... """"" Councilwoman Rhodes asked if the 19% increase Mr. Shira is projecting for 2003 based solely on tipping fees. City Manager Hooper further explained this being based on tipping fees, insurance, worker's compensation, employee benefits and additional wages. Mrs. Shira referred to Page 10 and the increase in personnel costs from 2002 to 2003. Councilwoman Rhodes then asked why the personnel increase is so much. City Manager Hooper elaborated. If the City is going to keep it the same as it is today, there isn't an option to the $4 increase or an option to be able to do it more effective or efficient that anybody can find. Councilwoman Lichter asked Mr. Wadsworth about the City privatizing back in 1980. Mr. Wadsworth stated they did. Councilwoman Lichter asked if we sold all of our trucks. Mr. Wadsworth stated prior to doing that the City sold most of them but kept a few minimal pieces of equipment. It proved unsuccessful due to the contractor that was doing the work who wasn't performing in a satisfactory manner to the City at that time. Councilwoman Lichter asked if the City then had to go and buy trucks and equipment again. Mr. Wadsworth stated we had to go back into the business. He spoke of the huge initial investment getting back into the business. Councilwoman Lichter feels there may be angles or things the City might be able to think of that they could bring up at the appropriate time that might help with the $4 increase. City Manager Hooper stated they have explored all of the options on the operations side. He feels to continue to do business as the City is doing today will cost $4 per month more and with a $1 increase every year through 2007. They can offset some of that if they start to look and actually enforce a method to charge somebody when they are using more than their normal allocated amount of trash pickup. Mrs. Shira spoke of the community recycling more with less trash going to the landfill. Mayor Schmidt spoke of the spring and fall cleanups. He suggested offering a free drop off which may eliminate some of those people that will throw large items in the woods but still have the spring and fall cleanups or offer a charge to come and pickup the large items. Ms. Johnson spoke of there being a problem with that through DEP because anything of that type nature has to be regulated and permitted through DEP. Page -4- Council Workshop November 18, 2002 ~ ~ Mayor Schmidt questioned people dropping it off at Mango and the City taking it to the landfill. Ms. Johnson stated they do it within a 24-hour period. They pick up white goods on Thursday and Friday and take those straight to Yorkie's recycling facility on those days. They don't actually store it at our facility. Mayor Schmidt suggested the same day we do it anyway possibly they could have people dropping stuff off. Ms. Johnson questioned doing this for free. Mayor Schmidt stated we are picking it up for free. Ms. Johnson stated it still isn't generating any additional revenue. Mayor Schmidt but it is saving revenue by not having one of our guys having to pick it up. Ms. Johnson stated it is only one guy. Councilman Hammond stated metal isn't bringing anything at Yorkie's. He took a load to Yorkie's and it wound up costing him more to do that then what he got back out of it. He then spoke of the increase to haul off tires. Councilman Hammond referred to Page 15. He questioned if they are figuring in working at the same equipment level that we have or if they are anticipating adding more equipment and more personnel. Mr. Shira explained their projections are to hold status quo. Councilwoman Rhodes mentioned $.50 of every bill going into the equipment fund and that this amount is still going to be there. Councilman Hammond spoke of the charges currently being charged on the water bill amounting to $13. He asked if the additional $1.50 and $.50 is being figured in. Mr. Shira informed him yes. Councilman Hammond asked what it would cost if they throw in another truck and another employee. He asked what would be the necessary increase to keep the service at the projections they are looking at. City Manager Hooper spoke of annexations and a new subdivision going in not being included in the estimate. They have included about 183 new houses per year to be added to the system. Councilwoman Rhodes questioned doing more annexations and another subdivision and this not paying for itself. City Manager Hooper spoke of not having impact fees on solid waste. At the $17 it is probably pretty close to it. Ms. Shira referred to the population projections. Page -5- Council Workshop November 18, 2002 "-" ....", There was a discussion regarding the routes. When you get to 1,450 customers per route, you have to create a new route. City Manager Hooper stated they are looking at a fairly close number to the $17. He would like to do a little more work with them on that to take care of future growth and expansion in some areas. Councilwoman Lichter stated nothing is set in stone. Even projected growth in the past has been anticipated more than what happened. She mentioned the two developments in the works right now. There isn't much more left in Florida Shores. She asked where they are talking about. City Manager Hooper stated they are talking of looking at our Comprehensive Plan, which projects population growth. Those numbers are close to exactly what is occurring since they adopted the plan. He then referred to the budget projections with regard to growth. Councilwoman Rhodes feels maybe we should not annex if we can't provide services. City Manager Hooper stated part of what you do when you do that is make sure the cost coming in covers that. In certain areas it does and it in certain areas it doesn't. Mayor Schmidt thanked staff for the information. Councilman Brown spoke of piggybacking with the County or State to purchase garbage trucks. City Manager Hooper stated we do that already. With the quantity we buy we won't be able to get the discount of being able to buy with volume like others do. Councilwoman Rhodes mentioned the small cities getting together. City Manager Hooper mentioned other cities have tried that. There isn't a big volume of buying that goes on with that. Councilwoman Rhodes asked City Manager Hooper to get the figure regarding what Waste Management pays for a truck. City Manager Hoper agreed to get that cost. ADJOURNMENT There being no other business to discuss, Mayor Schmidt recessed the meeting for ten-minutes before the Regular Meeting. The meeting recessed at 6:50 p.m. Minutes submitted by: Lisa Bloomer Page -6- Council Workshop November 18, 2002