Strategies for Bulky Waste Collection
in the City of Milwaukee
Prepared for the City of Milwaukee, Department of Administration,
Budget and Management Division
By
Anne Chapman
Carolyn Clow
Rachel Johnson
Brendan O’Brien
Benjamin Williams
Preview
● Introduction, context, problem statement
● Current policy: History and background
● Policy goals
● Analysis of three policy options
● Recommendation
Introduction and Context for Analysis
● Milwaukee operates in an environment of fiscal constraints
● One effective tool: Solid Waste Charge
● Bulky Waste Collection
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Extra material outside carts (regular pickup) and special pickups
$50 charge for special pickups: Bulky waste in excess of 1 cu. yd.
Revenue collected through $50 charge: approx. $100,000
Projected 2012 Cost: $1.1 million
Result: Bulky waste program is one of largest drivers of
unrecovered solid waste collection costs
● Our report develops policy options for reducing costs, increasing
revenues, and improving efficiencies in bulky waste collection
Statement of Problem
● Major bulky waste costs
● Employee compensation (salaries and fringe benefits): 60 %
● Fleet and Fuel: 15 %
● Disposal (landfill tipping fees): 10 %
● Bulky waste pickup process: staffing- and equipment-intensive
● Skid pickups primary factor in unrecovered costs
● Cost is $250 each, but revenue is $50 for most pickups
● Disposal costs vary directly with amount discarded
● Policy options could address problem in several ways
● Reduce costs/inefficiencies: Disincentives for bulky waste
● Raise revenues/Recover costs: Higher fees on heaviest users
● Consider impacts on illegal dumping
Background: History of Bulky Waste
Collection Policy in Milwaukee
Change
From free collection of all bulky waste to $50
for more than 4 cubic yards each week
Effective Date
January 1, 2007
Limit for free bulky waste reduced from 4 to 2
cubic yards each week ($50 for > 2 cu. yds.)
November 25, 2009
Limit for free bulky waste reduced from 2 to 1
cubic yard each week ($50 for > 1 cu. yd.)
January 1, 2011
Current Policy:
Options for Residential Bulky Waste Disposal
● If waste is less than 1 cubic yard: DPW crews pick it up, free of charge
on regular routes (if too heavy, DPW will send skid loader, at no
charge)
● If waste is greater than 1 cubic yard: Property owner must call DPW
to arrange for a $50 pickup. If waste left out on regular routes is
greater than 1 cubic yard, DPW tags it to inform owner to remove it
or be billed for $50 pickup.
● Other options: Self-help centers, Project Clean and Green, Weekend
Boxes, subscribe to extra cart service, distribute bulky waste in 1
cubic yard increments every week.
Policy Goals
● Efficiency: How well an option maximizes diversion,
minimizes cost, maximizes cost recovery and maximizes
neighborhood cleanliness
● Fairness: Two concepts of fairness:
● How well an option links amount of resident waste to payment
● How well an option minimizes any unequal burdens on
low-income residents and residents in specific geographic areas
● Ease of Implementation: Potential legislative and
administrative impacts
Policy Options
● Current policy: Waste exceeding one cubic yard in volume
requires a special pickup, for which property owners are
charged $50
● Policy option #1: $50 outside the cart fee; one free bulky
collection day per month, two cubic yard limit
● Policy option #2: Volume based charges with graduated fee
schedule, no free bulky waste.
● Policy option #3: No bulky waste fee; flat increase in solid waste
charge to recover all solid waste costs
Policy Option #1:
Options for Residential Bulky Waste Disposal
● Bulk pickup schedule reduced to once per month, but waste limit increased
to 2 cubic yards free of charge
● If waste is greater than 2 cubic yards or for an unscheduled time
● Property owner must call DPW to arrange for a $50 pickup (will be
billed)
● Property owner can transmit it themselves to self-help center
● Other options: Same as current policy
● Enforcement: If waste left out on regular routes is greater than 2 cubic yards
or on non-collection weeks, DPW tags it to inform owner to remove it or be
billed for $50 pickup.
Policy Option #2:
Options for Residential Bulky Waste Disposal
● Solid waste policy changed to volume based fee system
Volume
Less than 1 cubic yard
Between 1 and 2 cubic
yards
More than 2, up to 6
cubic yards
Fee, in Dollars
Projected Number of Charges
50
1,800
75
1,700
200
2,100
● Other options: Same as current policy
● Enforcement: Estimated number of charges includes a drop-off accounting
for tendency to under-charge for bulky waste
Policy Option #3:
Options for Residential Bulky Waste Disposal
● Revert to 2006 policy: DPW crews pick up unlimited bulky
waste, free of charge
● Other options: Same as current policy
● Fee Structure: Direct costs of bulk waste incorporated into
solid waste fee (staff, fuel, fleet, and disposal costs). Indirect
costs or benefits are not incorporated into initial solid waste
charge (nuisance abatement costs).
Efficiency
Policy option #1: Best cost reduction
● 47% decrease in fuel costs, 27% decrease in fleet direct
costs, 2 crews (4 positions) reduced
● Range of estimates: Plus or minus 50% for costs, plus
or minus 2 crews (4 positions)
Efficiency
Policy option #2: Best combination of cost reduction and
cost recovery
● Total cost recovery of 638,000 with new fee system, 1
crew (2 positions) reduced
● Range of estimates: Plus or minus 50% cost recovery,
plus or minus 1 crew (2 positions)
Efficiency
Policy option #3: Best recovery of costs
● Addition of 5 crews (10 positions), 71% increase in fuel
costs, 41% increase in fleet costs, 50% decrease in
nuisance abatement expenses, annual solid waste
charge increase of about $9
● Range of estimates: Plus or minus 33% costs in bulky
waste collection and nuisance expenses, 4 – 7 crews (8 –
14 positions), range of charge increase from $8 to $11
Efficiency Gains (Losses) in the Base Scenario*
$400,000
$200,000
Staffing Costs
$0
Option 1
-$200,000
Option 2
Option 3
Fleet and Fuel Costs
Disposal Costs
-$400,000
-$600,000
-$800,000
*cost recovery is not
included in these gains
Fairness:
Option #1 slightly increases pay for use, option #2
directly connects fees to usage, option #3 charges
everyone same amount, regardless of use
● Policy option #1: Slight improvement in pay for use; increased restriction
without change in fees
● Policy option #2: Much stronger connection of paying for use, potential
for increased burden on low-income and geographies with high
concentration of rental property
● Policy option #3: Much less fair in terms of connecting fees with usage,
mixed change in fairness for low-income residents and geographies
Ease of Implementation:
Option #1 is incremental, option #2 more
significant, option #3 a reversal of policy direction
● Policy option #1: Legislative change to ordinances; increases
predictability in route schedules, but demands winter contingency plans
● Policy option #2: Significant legislative change to ordinances; expansion
in current service and new collection behaviors would require
administrative training and follow up
● Policy option #3: Legislative change to past policy; leverage 2006
operations plan to manage administrative adjustments
Recommendation:
Policy option #1 provides incremental change with
optimal mix of cost reduction, fairness
● Follows trajectory of incremental City of Milwaukee adjustments
and in-line with “pay for use” values
● Strikes a balance for fairness, restricts frequency of pickups and
expands opportunity to dispose of larger bulky items
● Flexible: combined policy options are also a possibility
● Increase in fee for waste from $50
● For larger volumes, city fee is lower than local market prices
For further information
Contact the La Follette School’s publications office at
608-263-7657 or publications@lafollette.wisc.edu
Thank you