Changes to Town Trash Service

The Town posted an RFP (Request for Proposal) in September 2018 and received two bids for garbage service. The bids received were from Waste Disposal and Waste Management. At the October 11, 2018 Council meeting Town Council selected the winning bid from Waste Management.

The Waste Management residential bid was $11.95 monthly for once a week pickup. The Waste Disposal residential bid was $15.50 monthly for once a week pickup. The Town will be including a $2 monthly processing fee on garbage, if approved by Council. This could make the garbage rate $13.95 monthly.

The RFP proposals were required to meet multiple conditions: 
     -Establish a price for once per week residential pick up
 -Provide all residences with a 95/96 gallon can
 -Establish a price for commercial service cans & dumpsters
 -Establish a price for residential/commercial optional roll-off service
 -5 year proposal, with optional 5 year additional term
 -Company will provide trash cans
 -Residents will pay Town for trash service, Town will pay provider
 -Company will pay landfill at large commercial rate for Town trash
 -Garbage Fee cannot increase more than annual CPI beginning July 2020

Commercial companies are invited to use the Town’s contracted trash service, however businesses may choose their own trash provider per Arizona state law.

The proposal does allow for optional roll-off service for up to 30 days at a time, three times per year. Roll-offs could be used for home projects, cleaning out an estate, etc.Waste Management will begin providing the Town garbage service on December 1, 2018. The Town will be holding a Coffee with the Manager meeting in December to discuss the changes to trash and other changes.

Fee Increases
Town Council will be voting on the proposed fee increases on December 13, 2018 at the regular Council meeting at Town Hall.  The $11.95 rate will be set for approval as well as the Town $2.00 processing fee. The $2 processing fee will cover resource and staff time preparing the monthly bills.

Listed below are the proposed fees:

Future Increases
The RFP included a limitation on future fee increases as defined by the Consumer Price Index. From 2013 to 2017, the annual CPI ranged between 0.7% and 2.1%. For example, if the CPI were to remain at 2.1% over the next five years, the following rates would likely apply.

The below is for illustrative purposes only and does not dictate the fees for the years noted.

As is required by law, any changes to the fees must be done via Council action with sufficient notice given to the public.

Implementation Timeline 
     -October 11, 2018 – Council accepted proposal
 -October 12, 2018 – 60 Day click begins on new garbage fees
 -November 1, 2018 – Billing cycle notification via utility bills
 -December 1, 2018 – New hauler begins service
 -December 3, 2018 – Town trash cans removed
 -December 13, 2018 – Fees in place if approved via Council resolution
 -Jan 1, 2019 – First month customers will see the fee change on their utility bill

Why?
Although it appears to have been the only enterprise fund among Water, Sewer and Garbage that has made money year after year, the truth is the Garbage fund has failed to invest in the most vital of equipment necessary to be successful: a new garbage truck. The Town has historically chosen the repair route as a quick fix, which over time has cost us more.

Furthermore, the Garbage fund has not paid any fees to the Landfill, to deposit the trash collected around town. The Garbage fund should have been paying the Landfill to process the tonnage brought in from our residents. Had it been, we estimate the cost to be around $51,000 that the Garbage fund should have paid to the Landfill, based on last year’s tonnage.

In order for the Garbage fund to be self-sustaining, we estimate the monthly charge to the residents would have to be increased to $19.99 a month. Even so, it would take approximately a year, maybe two before the Town had the capital necessary, in the Garbage fund, to purchase a new truck. It is unknown how much taxpayer money would be wasted in that time period on repairs.

  

Posted in Town News.