HomeMy WebLinkAbout09-49FEBRUARY 10, 2009 09 -49 RESOLUTION
(CARRIED 4 -3 LOST LAID OVER WITHDRAWN )
AS AMENDED
PURPOSE: GIVE DIRECTION REGARDING RECYCLING MATERIALS
A) MANUAL COLLECTION / DUAL STREAM RECYCLING
B) MANUAL COLLECTION / SINGLE STREAM RECYCLING
C) AUTOMATED COLLECTION / SINGLE STREAM RECYCLING
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
BE IT RESOLVED by the Common Council of the City of Oshkosh that the City of
Oshkosh that city staff is hereby directed and authorized to proceed with the steps
necessary to pursue the following option for the collection of recycling materials within the
City of Oshkosh:
4\ MANUAL COLLECT ECTION / DUAL STREAM RECYCLING
B) MANUAL COLLECT ECTION / S STREAM RECYCL
C) AUTOMATED COLLECTION / SINGLE STREAM RECYCLING
AMENDED TO DELETE CHOICES A & B
COLLECTION OF RECYCLABLE MATERIALS
VARIABLE COST CALCULATION
FEBRUARY 2009
Dual Stream Single Stream Single Stream
/Manual _ Ran-,I (Manual - Bins) (Automated - Carts)
9 Year Total Cost (C +O)
+$92,400
+$92,400
+$106,260
Vehicle Purchase
3 vehicles
$462,000
$154k /vehicle
$462,000
$154k /vehicle
$705,000
$235k /vehicle
Additional Equipment
Manual Tipping Devices
+$0
+$0
+$12,000
2 vehicle
Additional Tipping Fee - Deba
Bag cost borne by
Bin cost borne by
$1,100,000
Cart Purchase
resident *
resident **
- $2,068
Reduced Garbage Volume/
$0
$0
( +5% = 183 ton)
Total Capital Costs (C)
$462,000
$462,000
$1,817,000
9 Year Total Cost (C +O)
+$92,400
+$92,400
+$106,260
Vehicle Maintenance
$256,053 ( *)
$237,733 ( * *)
+15%
+$18,320
+$0
+$0
Additional Tipping Fee - Deba
3664 tons x $5 /ton
- $2,068
Reduced Garbage Volume/
$0
$0
( +5% = 183 ton)
Increased Recycling Volume
183 x $11.30 /ton
+$34,000
+$34,000
+$23,800
Worker Compensation
100%
100%
70%
+$60,000
+$60,000
- $120,000
Labor /Benefit Expense
+1 FT Employee)
(+1 FT Employee)
(-2 FT Employees
Total Yearly Variable
Operating Expense (0)
+$204,720
+$186,400
+$7,992
9 Year Total Cost (C +O)
$2,304,480 ( *)
$2,139,600 ( * *)
$1,888,928
Average Variable Cost
per Year (C +O) - (9)
$256,053 ( *)
$237,733 ( * *)
$209,880
COLLECTION OF RECYCLABLE MATERIALS
COST SUMMARY COMPARISON
FEBRUARY 2009
Dual Stream Single Stream Single Stream
/flA -mn11nl _ Rnncl (Manual - Rinsl (Automated - Carts)
* Bag cost borne by resident
* *Bin cost borne by resident
C
+$462,000
C
+$462,000
C
+$1,817,000
YEAR 1
O
+$204,720
O
+$186,400
O
+$7,992
C
$0
C
+$0
C
$0
YEAR 2
O
+$204,720
O
+$186
O
+$7,992
C
$0
C
+$0
C
$0
YEAR 3
O
+$204,720
O
+$186,400
O
+$7,992
C
$0
C
+$0
C
$0
YEAR 4
O
+$204,720
O
+$186,400
O
+$7,992
C
$0
C
+$0
C
$0
YEAR 5
O
+$204,720
O
+$186
O
+$7,992
C
$0
C
+$0
C
$0
YEAR 6
O
+$204,720
O
+$186,400
O
+$7,992
C
$0
C
+$0
C
$0
YEAR 7
O
+$204,720
O
+$186,400
O
+$7,992
C
$0
C
+$0
C
$0
YEAR 8
O
+$204,720
O
+$186,400
O
+$7,992
C
$0
C
+$0
C
$0
YEAR 9
O
+$204,720
O
+$186,400
O
+$7,992
TOTAL
$2,304,480*
$2,139,600 **
$1,888,928
* Bag cost borne by resident
* *Bin cost borne by resident
CITY HALL
215 Church Avenue
P.O. Box 1130
Oshkosh, Wisconsin
54903 -1130 City of Oshkosh
OfHKOfH
DATE: February 6, 2009
TO: Mark A. Rohloff
City Manager
FROM: David C. Patek e�
Director of Public Works
MEMORANDUM
RE: Explanation of Cost Calculation for Collection of Recyclable Materials
Per our discussion, I am writing to provide additional clarification regarding the various assumptions for the
three recyclable material collection options. The costs are divided into capital costs and operating expenses.
The assumptions are explained as follows:
Capital Costs .
• Manual collection is completed with a two - person crew and rear loading vehicles.
• Automated collection is typically completed with a one - person vehicle.
• As part of the automated collection option, two manual tipping devices will be purchased for installation
on spare rear loading vehicles. These spare vehicles would be utilized by a two - person crew when an
automated vehicle requires maintenance.
• The automated collection option assumes that the cart purchase expense is paid by city funds, but the
manual collection options do not show any cost paid by homeowners for bags or bins.
Variable Operating Expenses
• The vehicle maintenance expense was increased by 15% for the automated collection vehicles. This
increase was utilized by the City of Madison for their cost calculations.
• The debag expense was increased from the previous estimated $2.50 /ton to $5 /ton. This increase assumes
elimination of this service by other communities in Winnebago County. The $5 /ton figure is likely to be
too low. Also, this expense does not account for any capital replacement costs for the old conveyor
system at the Winnebago County transfer station.
• The increased recycling volume calculation accounts for the less expensive recycling tipping fee ($15 /ton)
versus landfill disposal ($26.30 /ton). The 5% recycling tonnage increase estimate is conservative versus
the actual number seen in other communities (i.e. Madison saw 30% for 2 years).
• The worker compensation expense was reduced by 30% for the automated collection option. This
decrease is also conservative based on discussions with DePere and Madison
• The labor /benefit expense accounts for the staffing needed for the manual versus automated collection
options. The manual collection program requires an increase of one full -time employee to return to full
staffing for the Sanitation Division. The automated collection program will also add one full -time
employee, but show a net decrease of two full -time employees because of the conversion to single person
vehicles.
Additionally I am attaching statistics that show Oshkosh having the lowest per capita recycling rate among all
incorporated communities in Winnebago County. Moving to an automated single stream collection program
has proved to increase the participation rate in other communities. I hope this provides an explanation for the
variable cost calculation and cost summary comparison pages. Let me know if you have any questions.
DCP /clm
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