HomeMy WebLinkAboutIR 2553 r
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 2553
+�P T 11,10
`o`�oAr To the Mayor and Members of the City Council September 9, 1975
u�
SMR! Subject: SANITATION COLLECTION FROM COMMERCIAL CUSTOMERS
During the City Council review of the Public Works Department budget,
the following two questions were raised rea-rding City of Fort Worth activities
in the collection of solid waste from comme$cial customers: (1) how do City
charges compare with those of private haulers, and is the operation self-
sustaining?; and (2) if the City had more containers, could we get more
customers and at what cost?
1. The City Code, Section 16-11, sets forth the charges for
various classes of service for commercial customers. In
general, these classes of service provide for containers
of one, two, or three cubic yard capacity, one, two, three,
or four units, and on a collection frequency of twice per
week or six times per week. Interpolations of the pub-
lished rates are made to accommodate other frequencies to
meet customer needs. The Code further provides for commercial
service using conventional cans or bags based on volume and
frequency.
In general, private companies tend toward flexible rate
schedules tailored to specific customer needs and in-
fluenced by free market competition. In order to provide
some basis for comparison, major private haulers were
contacted and requested to furnish information on a class
of service which could be compared to an identical class
provided in the City's published rate schedule.
Twice Per Week Collection
Private Collectors City Collection
Average Charge Charge
3 cubic yard (c.y. ) $39.37/month $30.50/month
2 cubic yard (c.y.) $28.30/month $21.25/month
A review of annual operating costs (Revenue = $76,182,
Operating Costs = $82,058) shows the City's present
charges and the current customers generate revenues
about 8% below a self-sustaining level. An
Increase of 8% would raise the 3 c.y. charge
to $33.00 and the 2 c.y. charge to $23.00 monthly.
2. The City presently operates two 20 cubic yard capacity
side-loading container-handling trucks which service 135
commercial customers and 252 containers. These trucks each
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 2553 - Page 2
'�tlq�
"+ISO S To the Mayor and Members of the City Council September 9, 1975
;x;y Subject: SANITATION COLLECTION FROM COMMERCIAL CUSTOMERS
have capacity to handle 25 additional 3 c.y. containers weekly
if placed within existing route boundaries. The additional
commercial customers would make it possible to generate
additional revenue ($18,300) without the addition of trucks
and crews and by higher efficiency. It would be necessary
to purchase additional containers at an estimated cost of
$10,000. (Projected Revenue = $94,482, Revised Operating
Cost = $92,076.)
Further expansion to serve different geographic areas
would require an additional truck, containers, and
crew at a first year cost of approximately $91,800 and
recurring annual costs of $46,038 (including landfill
disposal costs.) This truck and crew could serve up
to 150 three containers. With all containers in service,
revenues would be up $54,900 annually.
Members of the Public Works staff believe that the additional 50,
three c.y. containers mentioned as additives to current operations
can be placed under current service demands. The addition of a new
crew and equipment would necessitate a sales campaign of some duration
based upon the competitive prices for containers between City and
private vendors.
In summary, two feasible alternatives to the City are:
1. Continue present operations and include an increase in
commercial rates not less than approximately 8 per cent
as a part of the sanitation fee increase package to per-
petuate the City's current gay-as-you-go philosophy in
solid waste management.
2. Purchase 50 additional 3 c.y. containers at an estimated
cost of $10,000 to improve route efficiency.
Council consideration of these alternatives is requested in conjunction
with the budget review.
If Council, desires additional information, it will be supplied upon
your request.
Respectfully submitted,
eAjellt.
R. N. Line
City Manager
RNL/fr
ISSUED BY THE CITY MANACER FORT WORTH, TEXAS