City of Brooklyn Park Request for Council Action Agenda Item: Agenda Section: Resolution: Ordinance: Attachments: Item: 8.1 Discussion Items N/A N/A 8 Meeting Date: Originating Department: Prepared By: Presented By: September 26, 2011 Operations & Maintenance Denise Rene Wollenburg, Elizabeth Tolzmann and Kara Trygestad, Administration Emily Bowers and Dan Ruiz, Operations & Maintenance Jamie Verbrugge Organized Collection City Manager’s Proposed Action: N/A Overview: On June 6, 2011, the Citizen Long‐range Improvement Committee (CLIC) gave a recommendation to the City Council to hold a public hearing and pass a resolution of intent to organize the garbage collection system consistent with the goals outlined in their Solid Waste Collection System study, which are to be a city, proactive and committed to being “Economically Green,” improving the City’s environment, while promoting a possible lower cost of service with high efficiency, adding more safety in our neighborhoods and conserving our streets. The City Council took the recommendation under consideration and asked staff to develop a community engagement plan to get more feedback from residents on the issue of organizing the garbage collection system. Staff convened three community café style public meetings; one in each voting district in the City. The meetings included an overview of organized garbage collection by staff from the MN Pollution Control Agency (MPCA) and insights from CLIC on their two year study of garbage collection. Three garbage related questions were asked: 1) What are your thoughts on organized garbage collection? 2) What do you value most about your garbage collection service? 3) What suggestions do you have to improve the garbage collection system? Approximately 420 residents attended the cafés. Approximately 85% of the attendees opposed and 10% supported organized garbage collection. The remaining 5% wanted more information. Detailed categories of responses and sample comments are in the attached Community Café Report. Staff also identified the opportunity to add some garbage related questions to a citywide survey that was being done. Preliminary results of the survey show that 62% of the respondents oppose or strongly oppose changing to organized garbage collection system, 25% support or strongly support changing to an organized system and 13% don’t know or need additional information. 8.1 Page 2 An online survey on the City website had 156 responses. Approximately 86% of the respondents opposed and 14% supported organized garbage collection. Staff also received feedback from approximately 74 residents through phone calls, letters and e‐mails. Approximately 76% of the respondents opposed and 24% supported organized garbage collection. City Council received feedback from approximately 400 e‐mails. Approximately 88% of the respondents opposed and 9% supported organized garbage collection. The remaining 3% were unsure or wanted additional information. At a recent City Council meeting, an additional question came up about cost comparisons between open collection and organized collection systems. Cost for garbage collection varies considerably depending on which company one chooses and what services one requires. The best way to know exactly what an organized system would cost in Brooklyn Park would be to go through the formal process as described in MN Statute 115A.94, however, some conclusions may be drawn by comparing costs. City staff members residing in Brooklyn Park were asked if they would volunteer a copy of their garbage bill to assist with a small sample of pricing. A chart with 21 responses is attached as Item 8.1E. The chart lists the base price for garbage collection and a price including fuel charges. No taxes or additional services were included in the chart. The garbage bill prices were compared to the hauler reported base rate in the Basic Services Schedule (Published Garbage Rates ‐ Attachment 8.1F). The Basic Services Schedule is compiled by staff twice per year by calling each garbage hauler and asking them for their price. This document is provided to residents on‐line and upon request to help them select a garbage hauler. Actual prices charged by garbage haulers vary considerably compared to the Basic Services Schedule (Published Garbage Rates). Attachment 8.1H compares the sample garbage bills, the Basic Services Schedule (Published Garbage Rates), and an organized city (Blaine) and shows a snapshot of potential savings between open collection and organized collection. The prices are for garbage service only and do not include the cost for recycling or yard waste service. The Brooklyn Park Basic Services Schedule (Published Garbage Rates) shows 30 gallon garbage service is 59.39% higher than 30 gallon service in Blaine, 60 gallon service is 23.78% higher than 60 gallon service in Blaine and 90 gallon service is 17.58% higher than 90 gallon service in Blaine. It should be noted that 90 gallon service in Blaine includes unlimited trash service, bulk item (furniture) pick‐up, and brush service. Actual sample garbage bill pricing shows 30 gallon garbage service is 103.8% higher than 30 gallon service in Blaine, 60 gallon service is 52.02% higher than 60 gallon service in Blaine and 90 gallon garbage service is 22.34% higher than 90 gallon service in Blaine. Primary Issues/Alternatives to Consider: 1. Do nothing ‐ Keep the garbage collection system the way it is. 2. Direct staff to set a date for a public hearing to formally consider a resolution of intent to organize the garbage collection system. Budgetary/Fiscal Issues: N/A 8.1 Page 3 Attachments: 8.1A COMMUNITY CAFÉ REPORT 8.1B CLIC GARBAGE COLLECTION SYSTEM STUDY 8.1C MPCA SOLID WASTE COLLECTION REPORT PRESENTATION 8.1D MN ORGANIZED COLLECTION STATUTE 8.1E SAMPLE GARBAGE BILL SUMMARY 8.1F BASIC SERVICES SCHEDULE (PUBLISHED GARBAGE RATE) 8.1G AVERAGE GARBAGE PRICING FROM SAMPLE OF CITY STAFF LIVING IN BROOKLYN PARK 8.1H BROOKLYN PARK COMPARISON TO ORGANIZED CITY 8.1A COMMUNITY CAFE REPORT Community Café Report – Garbage Collection Introduction and Background On June 6, 2011 the Citizen Long-range Improvement Committee (CLIC) gave a recommendation to the City Council to hold a public hearing and pass a resolution of intent to organize the garbage collection system consistent with the goals outlined in their Solid Waste Collection System study which are to be a city, proactive and committed to being “Economically Green,” improving the City’s environment, while promoting a possible lower cost of service with high efficiency, adding more safety in our neighborhoods and conserving our streets. The City Council took the recommendation under consideration and asked staff to develop a community engagement plan to get more feedback from residents on the issue of organizing the garbage collection system. Staff convened three community café style public meetings, one in each voting district in the City. The meetings included an overview of organized garbage collection by staff from the MN Pollution Control Agency (MPCA) and insights from CLIC on their two year study of garbage collection. The purpose of the Community Cafés was to allow the community at-large to share their thoughts on the garbage collection system in the City and to give feedback on changing to an organized garbage collection system. In total, approximately 420 individuals (residents, elected officials, and business members) participated in the Café process and they were asked three garbage related questions: 1) What are your thoughts on organized garbage collection? 2) What do you value most about your garbage collection service? 3) What suggestions do you have to improve the garbage collection system? It is important to recognize that although 420 participated, each person had the opportunity to give multiple responses to each question. One finding from the Cafés was that individual comments far outweighed group comments on each question. This is different than other Cafés the City has conducted; usually group comments outnumber individual comments. Major themes emerged in the responses to each question and these themes, along with miscellaneous responses, are reported in the summary of findings. Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 1 of 23 Summary of Findings Question #1 What are your thoughts on organized garbage collection? Nine themes emerged from a total of 393 responses Question One General 25% Rights/ Freedom of Choice 16% Free Market/ Competition Environment 2% Free Market/ Competition 11% Road Condition/ Traffic & Noise/ Safety 5% Administration/ Customer Service 5% Rights/Freedom of Choice Liberty/ Less Government Process/ Cost Loss of Jobs Liberty/ Less Government 8% Loss of Jobs 3% Process/ Cost 25% Administration/ Customer Service Road Condition/ Traffic & Noise/ Safety Environment General Some verbatim examples of the responses to each question follow. Rights/Freedom of Choice • I want the ability to choose my garbage hauler- freedom of choice (after all this America) Free enterprise • We want to the option to choose. • It seems to me that the bar over which any government agency must jump in order to limit my choices as a consumer should be set very high. I have not heard any argument for this proposal which approaches that bar, eith alone or in aggregate • Allow for consumers to choose what they believe is best for their consumption needs. • No more taxes! And no more control of people. • I don't want it. It takes away my freedom. • My main concern if this goes through it will eliminte our freedom of choice as well as eliminate the spirit of competition. Also the "potential" of cost savings. • When has no choice saved money • What happened to freedom of choice - even if it costs more. • Want Free market choice on who we choose to do business with • Why take away our CHOICE? • Takes away our choices Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 2 of 23 • taking our rights away! • I can choose the carrier that handles yard waste the way I want. • 4) Choice (personal) of who you & use? • What is the peoples choice if people don't want it. • Con- what if I want a difference service than what the city is offering Free Market/Competition • We want to be able to compete for prices and Quality of service. • This is more forced socialist ideas, ruining capitalism and our economy. • Entrepenaurs risking their business in this community - free enterprise • 8. organized system biased against small haulers. • Waste of my time and money; eliminates free enterprise; makes for bigger gov't • like the idea of competition • Small business person could not get any more contracts. • It supports entrepenuership and small business • Need to keep competition • I don't believe the "community" should be required to provide an argument against such a limit on Free Market Choices. The burden should be on the committee to provide an argument compelling enough to override a Free Markets choices. • The free market approach to business always works. • Like to support small business • why are you doing away with free enterprise • 5) Support of local business?? • 9. would organized system push small hauler haulers out & redue competition • FREE ENTERPRISES- WHAT WILL HAPPEN? Liberty/Less Government • We NEED LESS Government rather than more • Government intrusion • The current system works, I am NOT in favor of government control of this process. • 1. Too much government….numbers presented are BOGUS *NO control over hauler serving us. *Slanted towards revenue for the city/administrative costs *It should be put on ballot as a referendum, NOT LEFT UP TO CITY COUNCIL…. *CONCERNS THAT THE CITY CAN DO THIS AGAINST THE WISHES OF THE PEOPLE. Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 3 of 23 • Why does government need to get involved with something that works? • I want government out of my life haulers pay they have employees that pay taxes • I think it's a rediculous socialistic takeover by the city! • Government, at all levels, needs to focus on it's responsibilities, not reach into the people's lives. • Chance for city corruption • Concern that gov't is getting too much involved with personal services. • CITY ISN'T DOING A GOOD JOB MANAGING CURRENT PROGRAMS, WHY TAKE ANOTHER PROGRAM ON? • When have we ever seen anything become more efficient when government bureaucrats become involved? Process/Cost • Your figures (average) do NOT reflect this communities cost • It is wrong- City is going to make money and screw the haulers. • Concen IS that by dividing the city into sections that there is potential for sections to have different rate • Why not let neighborhoods select a trash collector for their groups that way we would still be in control of our service and reduce # of trucks and reduce pollution in our neighborhood. • Divide city into zones and let zones select hauler • city administration costs • Encourage recycling less costs in "pay as you go" system • suggestion:grassroots organizing of neighbors • cost is a big question • Will need increased staff • There 's no stopping your service for snow birds you'd be paying for services when your not needing garbage service. • I'm on the fence - can we actually limit the organization to he haulers and not ramp-up the costs to households by having too much administration costs, etc. You know how inefficient government can be!! • It does not guarentee lower cost • It will raise taxes!!!! • If we go to one hauler & it doesn't work out can't go back • Probationary period if organized collection is instituted 13/14 in favor of staying the same • In long run cost savings is questionable Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 4 of 23 • Have not provin that it will be cheaper. • Loss of control (town home assc.) • Administrative cost. • 1 wants low cost • Administration costs will increase taxes • As long as haulers maintain their market share • Thoughts on orgainized collectiion - a) do average rates for organized MSW include the city levy increase for property tax, to cover city costs to administer the organized MSW program? Also, MN Waste Mgt. fee & Hennepin Cty service fee? B) For organized MSW, will residents have options for cart size/cost? • Average monthly rates - how long are the savings maintained (cable rates) and introductory rate? • Pay-as-you-throw? NO WAY. • Will really reduce costs? Who will my hauler be? Loss of Jobs • Why put these small business out of busines-especially in this bad economy. It seems wrong to do just for convenieice and less traffic on roads. • In this economy, we need people to keep their jobs in the private sector, not create more jobs in city hall & reduce jobs in the private sector. • Don't want to force the independent hauler out of business. • Cost the small companies their jobs • Mom & pop operations could be put out of business, or have to lay-off personel. • Carriers that LOSE OUT will have to lay off employee • Will private business owners lose their businesses - yes they will… • Is this going to reduce jobs Administration/Customer Service • Concern is that city may not be as responsive as a private company • LIKE ABILITY TO CALL HAULER & SWITCH BECAUSE OF • Concern that "contract hauled" - 4 year contract with city will lost sensitivity for individual household customer service. • container replacement can be done with private hauler by the next day. • Advantages able to change can temp stop service (snowbird residence) More personalized ability to work with organizer No incentive to recycle Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 5 of 23 • Service would suffer, projected cost savings does not justify change • Customer service will go down • Better service with my own private hauler • Reliability • 1) quality of service?? • 3) admin. Costs- • Will efficiency be maintatined & communication to residents. • How many personnel positions will be added for organized collection? • Are we still going to have quality with the lower price? Road Condition/Traffic & Noise/Safety • I am not entirely against this - I like the idea of less trucks on the street. • WHO CARES ABOUT NOISE, IT IS ONE DAY A WEEK, WE LIVE IN AN URBAN SETTING, WE EXPECT SOME NOISE. • Some truck traffic could be eliminated by maintaining number of haulers in open system. • We get 8 garbage trucks per week - two trucks per company. The 2nd week we get the recycle truck. That's 9 trucks per week. • Cheaper rates, fewer trucks driving through neighborhood • Charge us an extra $20 or $40 a year to fix the streets. Like Roseville does & keep more business in business • If you want to limit road wear & tear, reduce the number of school buses. • Pro- reduced traffic and maintenance • Studies show that weather conditions are harder on roads than trucks • school buses worse on roads • Safety- how many people have actually been injured by garbage trucks? Show us some hard data. • If as you say there is a safety issue - how many children/ adults have been injured by a garbage collector. • Would this truly be decreasing the number of trucks. • trucks- what about school buses? Environment • Has costs and air pollution Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 6 of 23 • Unsustainable use of natural resources (fuel) by numerous trucks going down street - I don't like the fact that people who complain to this hauler get cheaper rates • Being green, less trucks, less fuel being used • More recycling would be good. • Need bigger recycling bin! - or pick up weekly rather than bi-weekly. • Not sure we want organic recycling (But not apposed) • Just how much fuel would be saved? - with an organized system General • Don't want it. We are doing ok now • Presently happy with individual hauler! • City is not efficient with tax payer money - too much WASTE! • Good options on both sides • Don't reach into our lives- the government has enough to worry ab out- • We don't want it- we don't need it • It is not fair for the customer or the hauler. • 3 TAKE TO REFUSE • Your presentation was biased towards organized collection. • Opposing view was not permitted. • We OPPOSE Organized Collection. • not enough information to make decision • Am for it as long as the rates are lower and traffic is lessened and bulky items are collected. • There are many questions in people's minds that are causing fear. • I do not want organized collection. • Take a vote by show of hands to see how many people are in favor your organized garbage collection. • Do not need it. I'm very happy with my hauler. Theya re good and conserate. I cannot see it helping our community at all. • It's only organized crime. Forget this "organized collection". • Stupidest proposal Ive heard in a long time • Don't believe that the decision isn't already made and city isn't just going to go ahead and have one hauler. • Other cities' citizens have voted against it & those cities still went ahead & did it! • NO - IF YOU HAVE TO DECIDE ON "WASTE MANAGEMENT" COMPANY!! Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 7 of 23 • I am happy with my carrier • city has bigger problems then garbage!! • Attracting racoons & coyotes etc (skunks) • War in Iraq is largely for access to oil. • Reduction of fuel consumption is a small way we can help end the war- casualties & cost. • Please address real problems crime, taxes • reduced taxes • One garbage truck per week • 2 out of 3- undecided due to lack of specific info • Strongly opposed • what cities currently are using this form of collectiion service (& their size/population) • That all you got to do? • When was the last time Government spent $'s more wisely than the private citizen can?Other than defense!? • How wil the final decision be made? • How would this affect business, school, churches & apartment bldgs • Why fix something that isn't broke? • How many CLIC members are members of neighborhood associations • How can a decision be made w/o complete data? • Is this for garbage collection only • what about yard waste, recycling, etc. • Why did only Waste Management present? • Smell of containers? • Why was there no representation from the other side Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 8 of 23 Question #2 What do you value most about your garbage collection service? Nine themes emerged from a total of 376 responses General 11% Environment 1% Question Two Road Condition/ Traffic & Noise/ Safety 3% Rights/Freedom of Choice 18% Rights/Freedom of Choice Free Market/ Competition Free Market/ Competition 5% Liberty/ Less Government Process/ Cost Liberty/ Less Government 2% Administration/ Customer Service 33% Loss of Jobs Administration/ Customer Service Process/ Cost 27% Loss of Jobs > 1% Road Condition/ Traffic & Noise/ Safety Environment General Some verbatim examples of the responses to each question follow. Rights/Freedom of Choice • Choice, lower cost, accountable to citizen • I pay them to do a good job and if they don't I call them and they want to know - to keep my business. • Free choice • Change haulers @ any time • If I don't like this service I can change vendors - more to the point of the question I've had the same service for 20 years and have customer service that is important to me. I don't want to be held over a barrel due to a city impose monopoly. • 4. Choose to change hauler • It is my liberty and my god given freedom that is my freedom of choice. • freedom of choice • If dissatisfied with service, ability to change if don't not happy. • Want to select my own company. • Choice. Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 9 of 23 Free Market/Competition • Supporting local business a Small business. • Competition breeds good customer service/appreciation. • The free enterprise system and the least government intervention. • Competition- if they are getting too high or not good service I can call and get someone else • Price competition between different service. • Competitive pricing. • Competition. • Free market choice. • Opportunity for new entrants for increased competition. • Entrepreneurship. Liberty/Less Government • My local Government is not being enlarged!! • we don't tell the city what they can use, so don't tell us, what to use!! • we need less gov't in our private lives • Less government control • less government involvement - the better • gov't does nothing unless it benefits them! • I WANT THE CITY TO STAY OUT OF OUR BUSINESS • less bureocracy • Government isn't telling me what I have to choose. Process/Cost • Excellent carrier with low prices. • YARD WASTE BUCKET • PRICES STABLE • Reasonable priced • The ability to supend service at no cost while on vacation. • no fees for garbage outside the can. • PROVIDE LOWN REFUSE REUSABLE BAGS AT A REASONABLE PRICE- • THE PROMPT, RELIABLE SERVICE AT REASONABLE COST. Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 10 of 23 • What do you value nost about your garbage collection service? A) reliable, low cost, service with options for cart size/service cost B) Family run hauler is easy to contact, and will do some extra itempideups at resonable rates • Price and relationship w/my hauler • 6. Personal service • They take all materials at the end of driveway. Very nice - Jonny on the stop - personal your container recovery. Collection service can be stopped when on a long vacation (1 - 3 months) • trash cans cleaned periodically • senior rate (ACE) • 1. They take whatever I put out and also they pick up messy debris left outside dumpster. • Personal service • I can select desired features and negotiate the price. • Customnized service • low cost associated with good service • They pick up everything- • They give a senior discount. • One company gives a military discount. • I don't have to pay for the things I don't use. • Our current company gives us personalized service. • Menu of service • HAULER PROVIDES FREE SERVICE TO DEPLOYED MILLITAR • Vacation credit • Lower cost/for less service • Will yard wast be changed as price? • You say cheaper, how much cheape? • where garbage goes, if city takes over, where will it go? • Will they take the extra garbage tht you might once in awhile? • Will they give extra favors the garbage companies give now? • Services?? • Vacation credits, how will this be handeled (individual service) • Cost?? Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 11 of 23 Loss of Jobs • small guy has opportunity to earn living Administration/Customer Service • GOOD Service • LOCAL – PERSONAL • CALL FOR SPECIAL DISPOSAL • Relationships with my hauler - They listen when you call and do everything they can to help. • Reliable • Acommadating • Customer friendly • Deal directly with company I am paying for • Clean, polite, on time and efficient • When you call we get a person not a menu with no ultimate result. • Responsiveness • Speak to a human at ea. Call/problem • Responsive to customer - Live voice - NO Recording • if garbage isn't out on time - I can call and they will send a truck back to get it. • Reliable - dependable. Ability to contract hauler. • One on one customer service with your current hauler. • My garbage hauler wants to keep me so they care about my concerns. I've had the same driver for 30 years and I don't want to lose him. • Impeccable service • If we forget to get trash to curb, current handlers will make another pass through neighborhood to pick up trash. • I value that if I forget to take my can down, my collector will do it. • When they empty my can, it is always set 20 ft so I know it has been picked up. • ability to communicate directly with those we choose to do business with. • It's on time always • Our service has been very good • Quality & service and ability to control our cost. • Customer service • That he shows up every week reliable, courteous. Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 12 of 23 • odd missed pickups that they perform (when I missed putting the cans out) • Excellent customer service from a small family business. • Direct contact with service providers excellent pricing & service. (2 people say this) • Everyone likes who they currently have & the prices we pay, otherwise we would switch haulers. • Customer service (Real Human voice) • I get a real person to talk to me • I don't get a menu that I have to listen to • Personal relationship. • Service quality. • Long-term relationships spanning decades. • if we have problems, who do we go to? • Plus if I were to have problems - who do I turn to? I can't just change. • will it be an option to call either city ir company on customer service issues? Road Condition/Traffic & Noise/Safety • No safety issues in our neighborhood • We don't have alley in 99% of BP so why would we have to pay Road Impact monies. • He's a smaller hauler (garbage man) He has a small truck + does not do damage to my road. • He has a smaller truck with less noise and weight on our raods. Always put the can in our driveway when it is emptied. • smaller truck • We don't see the heavy traffic of lots of garbage turcks in neighborhoods. • Less noise disturbance by fewer trucks going up and down our streets (especially for thos working non-traditional hours as they try to sleep during the day) • How many children have hurt? • How many trucks will replace current haulers & how large will these vehicles be? Environment • 1. Environmentally friendly - small trucks x2 • 5. Like being green less fule and trucks covering same service • no land fill dumping (Garbage Man Co.) • Our current provider is "Garbageman"- they are "green" already. Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 13 of 23 General • Provides large wheeled container • We fill one 18 gal bag per week & pay $60.00 per quarter • I like the fact that my garbage gets picked up - I don't care by whom - I just want it gone. • 7. They take my garbage away x2 • feel more secure with a local company • Family owend and operated • Small businesses • 4. Prefer my garbage be burned and not go to landfill (I was told they take garbage to a burner). • The ability to support local companies. • They are local, they want to do a good job for our State flexibility • Chart showing collection dates • Fell loyal • I walk six miles everyday and they all wait for me-wave-give mem space- school buses don't! • I am not brow beaten into recycling by them. • IF THIS GOES TO THE CITY NO ONE WILL CALL US BACK. • City of Brookyn Park does not respond well to complaints. • Why is the recycling contracted through the city as opposed to independent? • What is the administrative cost to the city for recycling? • Why change when current system is working? Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 14 of 23 Question #3 What suggestions do you have to improve the garbage collection system? Nine themes emerged from a total of 256 responses Rights/Freedom of Choice 3% Question ThreeFree Market/ Competition 5% Liberty/ Less Government 9% Process/ Cost 18% General 54% Loss of Jobs 1% Administration/ Customer Service > 1% Environment 2% Road Condition/ Traffic & Noise/ Safety 8% Rights/Freedom of Choice Free Market/ Competition Liberty/ Less Government Process/ Cost Loss of Jobs Administration/ Customer Service Road Condition/ Traffic & Noise/ Safety Environment General Some verbatim examples of the responses to each question follow. Rights/Freedom of Choice • I am unaware of any problem to "improve the collection…." if I discover a problem I will be able to exercise my freedom of choice and replace the service • Leave the decision at the personal choice level. • Let the individual resident make the decision about their hauler. • 2. I also say (loudly LEAVE It AS IT is !! - we like the ability to choose our own gargage ahauler - Its Freedom of speech • More choises continuing Free Market/Competition • Let competitors work FREE enterprise. • Competition is good. • Allow for as much competition as prossible • Whatever happened to capitalism? Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 15 of 23 Liberty/Less Government • Leave it alone keep our government out of it! • City please stay out of our business • 7. Gov't needs to let small business grow. • Keep government's focus on it's charter. • Stay out of people's business and leave everything as they are. • A. Keep it out of the hands of government!! • No government of out hand. • Keep the city out of it. • Keep government hands out. • Government should not be involved. Process/Cost • have haulers co-ordinate their pickup schedules • Neighbors and associations can get together to negotiate on their own. • What about yard waste pick-up. Will that be offered by the one hauler? • Zoning might work well so all haulers for BP retain their share of the market. Of course tey might not retain their rates w/ organized hauling. It would be nice to pay per bag because we have very little garbage / wk (one 18 gal. bag) We recycle the rest. • 1. Have all garbage companies work together to select one hauler to pick up yard waste! For estimates - reduce truck traffic by 33 - 42 % 2. Supply compost bins to reduce yard waste. • Have pick-up of misc. items twicea year the curb • City should suggest that neighborhood get together and bid rate as a group • 1. Charge by the pound • 3. Every zone could have selected vendor they give reduced costs, conserve fuel to save roads. Negotiate fees each year • divide BP into zones • more can sizes available • 1) allow neighbohoods to organize for a single hauler not entire city • Organized collection system/ divide City into sections to employ all hauler. • Negotiate prices • Price competition review contracts more often much more often than 10 years • Limit the number of haulers for each area (3)? Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 16 of 23 • Not having to negotiate between carriers. • Loyalty discounts. • What makes the system great is the individual services each provider can give. • Have the multiple haulers follow more similar routes so they pick up the trash at a more similar (or window of) time. Pick-up times can really vary from hauler to hauler • Make any registration fees nominal in price. • Would all residents be required to have garbage collection? • Can individuals have a smaller garbage can and be charged less? • Or will people with minimal garbage share a can? • Coule we have a few haulers for each section • Will they take hazardous waste, or will this still need to be take to Hennepin County recycling point. • Is it more efficient to do garbage one day, recycle another, lawn waste another day? Loss of Jobs • It would mean loss of jobs for the smaller company. • We are losng job why creat more problems for small business. • What is going to happen to them? Where are we helping the small company? Administration/Customer Service • pick up fallen garbage Road Condition/Traffic & Noise/Safety • Trucks need brakes. They accelerate between stops & brake suddenly. 9 trucks with noise. • Road repairs and cots to individual owners. • 2. Reduce number of trucks to conserve road damange • Build the road repair costs into the fee for being licensed hauler • truck weight limits • Noise issue • organize so 14 trucks not coming down street • Have haulers coordinate schedules in neighborhoods to help with reduction of noise. • If the smaller companies could reduce the number of trucks it would help. • How many accidents have actually happened with children? Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 17 of 23 • Trucks are on a schedule, can they be slowed down? Environment • Address concerns differently regarding environmental issues. It doesn’t have to be resovled only by organized hauling. • Encourge more recycling, especially at public events • Trucks energy efficient General • LEAVE IT ALONE, IT IS NOT BROKEN • LEAVE IT ALONE!! • Our system works fine • Our system does not need improvement • I don't see any issues with the current system - leave it be! • No one has described the "problems" that need to be fixed - why are we ven discussing this whose agenda is this - no improvenment needed • I didn't know there was a problem. Other than the increased in rates. • Repeal current law that allows for cities to be able to organize collection • I value the current system. • I do not percieve this system needing fixing. • I hate stupid citations to have you cover your garbage cans in the back, then with a fence, then it couldn't be seen by the neighbor- give me a break. • keep as is, individual choices, competitive prices, • This group feels that the current system works (no need to create problesm whaere there are already solutions) in our group 10 out of 10 are in favor of keeping current open market system • Spend your free time holding babies at the Crisis Nursery, perhaps! Thats worthwhile • Keep it the way it is. • The way it is now, is good. • If it aint broke, don't fix it. • In favor to keep things the way they are: 9. How many want more research to organize = 0 • The system is working. There is nothing that needs to be improved. • There are much bigger problems in our city than spending time on looking at improving garbage collection. • Leave it be. Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 18 of 23 • CLIC committee's time would be better spent actually picking up garbage rather than looking at ways for government to take control of it. • Put city garbage cans by Metro Transit stops (we did have one idea) • 7 are strongly in favor of keeping it. 0 want to move forward with this. • Please spend your time or something else. • Education program about recycling to promote more recycling. • More competitive choice for recycling. • 9 of 9 people with to keep freedom of choice. • Stop making me pay for recycling totes that I will never use. • 3 for keeping the same, 0 for changes. • 8. Can we hear from other citizens in cities that have organized haulers and see if they like the system • Why don't you put this issue on the election ballet this next year? • Who is manufacturing this problem? • WHY FIX IT? Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 19 of 23 Additional Comments on Organized Collection Eight themes emerged from a total of 144 responses Additional Comments Rights/Freedom of Choice 5% Free Market/ Competition 6% Liberty/ Less Government 6% General 40% Process/ Cost 23% Rights/Freedom of Choice Free Market/ Competition Liberty/ Less Government Process/ Cost Loss of Jobs Administration/ Customer Service Road Condition/ Traffic & Noise/ Safety 12% Loss of Jobs 7% Administration/ Customer Service 1% Road Condition/ Traffic & Noise/ Safety General Some verbatim examples of the responses to each question follow. Rights/Freedom of Choice • price options are possible with freedom of choice. • I do not want to lose my right to chose the co. I want @ the price I want. • Let's keep our freedoms our liberty for all! • If you go to one of them would you please voice my/our opinion--you may use our names- that we want to keep and choose our own company and do not want this right taken away. • Do not take away my right to choose what service works best for my family. • Jhow we can switch haulers whenever we want • Gordy-Freedon of choice Free Market/Competition • Free enterprise is better for citizens • I do not agree that haulers should have to bid for work to pick up my stuff • Let competition occur - it leads to lower costs and better services. • We need more businesses; • No competition normally means higher rates. • Limits business for the hauler • Tom-Economic impact to hauler, theivre investment and service B worth them to continue Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 20 of 23 • Mike-100% OPPOSED Free market is valued does not support mission • Aganst small business Liberty/Less Government • government is too big and controlling now. • NO! Gov't take over!!!!!! • Keep government and monopoly out of Brooklyn Park. • Stay out of the private sector. • Neighborhoods decide NOT GOVERNMENT • Don’t need any more Government • Mark-Government is already to big, learn from Federal • Against government getting involved Process/Cost • For instance, it is cheaper to pay for an extra yard waste container than to use the special bags that are required. We have a big yard and use the containers for leaves, branches, weeds, gardening stull. We dont have a trailer to haul it somewheres. • Support process for neightborhoods to decide if they want to organize • We are paying lower rates that city has shown or presentation • Not the same service we are used to • Organized by zones (like Champlin) was universally agreed to be a good idea • Cost quoted does not include taxes etc Cost is not related Loss of Jobs • we don't want more people pushed out of a livelihood for some Big Corporate giant who will under bid and they raise prices. • Do not want to add to the unemployment levels • Putting business into bankruptcy? • People will lose their jobs and companies will go out of business. • Jobs elimated • Could quarentee businees for hauler • Will put haulers out of business • Has the city considered the economic impact to the haulers? Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 21 of 23 • How many jobs would be lost? • What about the haulers - will they lose their jobs over this? • Will it put haulers out of business do not want that to happen Administration/Customer Service • There will be limited negotiating if the driver is rude or lazy or not responseable Road Condition/Traffic & Noise/Safety • In my neighborhood "school buses" by edgewood school are far more numerous than garbage trucks • Children are run over more often by speeders & inattentive parents and garbage trucks are being used for a nonexistant complaint. • I live on a busy street & do not notice the traffic going back & forth. • 83rd doesn not have sidewalks and we do not need same - street is safe for children and animals • Quiet - It is only 1 day of the week. People should be able to handle a little bit of noise once a week. A lot of people are at work when they come by. If we go to 1 service company, we could potentially have them in our neighborhood longer because they would have to empty their trucks more frequiently and come back. Therefore it would be nosier, longer. It currently takes only 10 minutes althogether for garbage, recycling and yard waste on our block • When trucks leak hydraulic oil on street who cleans it up - noone. 763-424-6934 Bob Swenson 7764 Kentucky Ave N, Brooklyn Park 55445 • Kids and garbage haulers need to continue to be aware of each other. Dont have such a fast tight schedule for the haulers. Let them slow down a little so they have more time to be aware of what is going on around them. • We don’t see the heavy traffic from garbage trucks • We don’t see erratic (poor driving) from garbage truck drivers • More damage done to roads • Lots of trucks • Safety • too many garbage trucks going down my street on garbage day • Leonard-Cost of repair and traffic of roads may support organizing • trucks will not disappear those will still be haulers • What is impact on BP roads? Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 22 of 23 General • major cities have history of criminal control of garbage service. • When the city started recycling fees they were low and creeped up! • How can you say that Brooklyn Park has opportunities for all when you're considering or looking into only one garbage hauler. That's an opportunity for only one company! • It doesn't matter to us what the city of Roseville and Oakdale do – • Happy with service • Haulers charge different prices for different customers • The city needs to address the problems in the City instead of worrying about the garbage He wants job to be the garbage caretaker • Leave it like it is !!! • This has been a very 1 sided forum- waste management was mentioned/there was no comparison to the other companies • no explanation as to what would be covered no comparison. • You all had 2 years to come up with your info how much time was given to us let alone the lack of info. • The city says they want small business in brooklyn park- this would not be following through on it. • If the concensus of the people do want organized waste collection - is the city going to listen to the people? Or are they going to go forward so they can make money for themselves. Community Café: Conversations about Garbage Collection in Brooklyn Park Community Café Report Page 23 of 23 8.1B CLIC GARBAGE COLLECTION SYSTEM STUDY Page 1 Solid Waste Collection System Study During the past two years the issue of solid waste management has been discussed briefly and informally at various CLIC meetings. Because there is substantial interest in this subject, our task force was established for the purpose of reviewing the existing system, defining the issues, both pro and con which relate to this matter, obtaining more information about it, and considering and evaluating possible changes to the established system. Terminology For the purpose of this memo, there are two basic types of Waste Collection Systems, i.e.: An “Open” system is one which is operated entirely by private operators, with little if any control by any government agency…..with the exception of a few basic controls established in the interest of public safety, environmental issues, etc… An “Organized” system is one which is operated by, and/or controlled by a governmental agency. Several options for the operation of “Organized” systems include: • One in which the governmental agency controls and operates the entire service….from owning and operating the equipment needed to setting rules and regulations for this service, and the financial management of the system. • One in which the governmental agency does not own or operate the equipment for providing this service, but employs one or more private companies ….usually based on a bidding process ….but the governmental agency monitors the contractor’s performance to assure compliance with the contract. Under this option the governmental agency manages the financial functions….including the billing of consumers (in a City, this would normally be included with the City’s Utility billings…(for water, sewer, etc) • Other variations of either of these forms, or a blend of those functions which may be beneficial to all…..the property owner, the contractor(s) and the Governmental agency... Brooklyn Park’s existing system: The existing system has been in place since about 1980, with minor changes. This system is essentially an “open” system, in which residents individually contract the service of a privately-owned commercial waste management company (with one of the 9 haulers now licensed by the City). Each of the haulers licensed by the City pay annual fees of $150 per company, and an additional fee of $75 per year for each collection vehicle in excess of one. Monitoring of the provider’s service is essentially the customer’s responsibility….except that, when significant environmental problems develop, complaints (coming from the property owner….or his/her neighbors are reported to the City)….which has limited authority to require improved performance. In this system the City annually specifies which company(s) may provide service to residents within the 5 geographically-defined zones. In addition, the City’s ordinances require that each residence within the City must dispose of garbage weekly. 8.1B Page 2 Also, a “Closed” recycling program is provided where the City contracts with a commercial hauler to provide this service. Alternatives to the existing system: To become aware of the various systems which may be considered, the Task Force and City staff members invited several speakers to attend the full-CLIC meetings. Those presentations may be summarized as follows: • At the October 14, 2010 CLIC meeting Peder Sandhei, a staff member from the Minnesota Pollution Control Commission (MPCA) discussed numerous findings as reported in MPCA’s recently published report “Analysis of Waste Collection Service Arrangements”, a lengthy, very detailed summary of information assembled by the MPCA in response to a directive from the Minnesota Legislature. This report includes *Descriptions and evaluations of the numerous types…and sub-types of collection systems. *Detailed reports defining the systems currently in place in many of Minnesota cities , including their pro’s and con’s…..and an evaluation of their performance. Mr. Sandhei also noted that several cities, including Robbinsdale, Roseville and Oakdale have developed systems which allow an “Open” collection system, but require haulers to pay substantial fees to compensate the City for undefined damages to their streets. These fees produce relatively small revenues for the City… (more information is needed regarding these cities).. • At the November 18, 2010 CLIC meeting City Attorney Corrine Heine discussed the rules and regulations relating to the establishment of an “Organized” waste Collection System, including the requirement that if a City wishes to consider establishment of an Organized system, the City must give a 180-day notice of their intent to seriously consider such a proposal, with specific provisions relating to the delivery of notices to privately-operated firms.. • At the December 10, 2010 meeting of CLIC Roark Haver, the Solid Waste Manager for the City of Blaine (he’s a resident f Brooklyn Park), described Blaine’s “Organized”” system, noting that it has been operating for more than 40 years.. There, the City has negotiated annual contracts with a single hauler….(they have never changed haulers)…Also, since the hauler is under contract with the City, and the City is responsible for providing quality services to its customers (the citizens) City staff has the ability to require correction of service problems. • In a recent survey in Blaine 88% of residents expressed full satisfaction with this service. • At the January 13, 2011 meeting of CLIC, Jennefer Klennert from Waste Management discussed the hauler perspective of “Organized” collection systems. She said most haulers oppose this type of collection system. She also said that Waste Management supports a City’s right to choose how to manage trash and recycling and that they will support the City in achieving City goals related to trash and recycling systems. 8.1B Page 3 Issues of Concern Regarding the various options for Solid Waste Management . In our discussions regarding this subject, numerous areas of concern, both positive and negative, have been discussed. These include the following: Re: The existing system in Brooklyn Park: Positives: • Choice of hauler (i.e. small or large) • Can change hauler anytime • Ongoing competition for individual accounts • Can customize/change individual services anytime • Hauling businesses have opportunity to grow in the City Re: An organized collection system: Positives: • Safer with less traffic • Less noise • More efficient collection • Less emissions • Less expensive (20% to 30%) • Less road wear • Consistent/set service levels • Could include organics/food waste composting • Full participation/less illegal dumping • Less disposal liability • Flexible structure Other impacts: positive and/or negative of an Organized System: • When various residents in a specific block or area select different haulers, the number of collection vehicles increases…..there are many instances where 3,4,5 or more collection vehicles travel parts or all of the same route through a neighborhood on the same day.. This increase multiplies the impact on the streets, alleys, etc ***; multiplies the occurrence of noise(much of that occurring in the early hours of the day); increases the opportunity for accidents with people and with other vehicles. ***Note: Because it is very difficult to accurately measure these impacts, and to place a value on their costs, this is frequently used in arguments opposing an Organized system. However, there is little room for doubt that this is a significant factor. Hopefully, a professional, conclusive study defining this factor can be found. • As an environmental issue, the amount of fuel used when several haulers drive the same routes the amount of fuel usage certainly increases, and their discharges into the atmosphere increase likewise. 8.1B Page 4 • Not all of the residents will contract for service, choosing instead to agree with their neighbor to share the service (positive); mulch their leaves, composting (positive if done properly), uncontained outdoor storage (negative) or finding other places to dump their wastes (along streets or highways, in dumpsters serving commercial or multiple-housing complexes, and many other places) • Regardless of which such alternatives may be selected, it is difficult for the City to enforce compliance with rules and regulations pertaining to public health, nuisances, etc. • Numerous sources indicate that the number of residents who are not subscribing to service in Cities with Open systems varies in the 15% to 25% range. • Under an Open system, the collection of fees for services frequently becomes a problem. Under an “Organized” system a City can easily include these fees into their Utility billing system and certified to the County for collection if and when the property is sold. Consideration of Options and Making a Choice While the accumulation and evaluation of information regarding this issue is time-consuming and difficult, the process of making a choice is certainly the most torturous. Under Minnesota Law, if the City Council decides to consider making a change from its Open system to a Closed System, it must give public notice of its intention to so consider it. It must then allow at least 180 days for the public to provide their comments, information, etc…. Based on the experience of other cities who have seriously considered making such a change, it is virtually certain that: 1. There will be quite a few citizens who will oppose such a change because ”we like to have our choice”……we have used the same hauler for the past xxxyears…we like their service…and we don’t want to give that up……” 2. There will also be a very concerted effort from the Waste Management Industry who will frequently attend the City Council’s meetings, perhaps make personal visits with Council members, and organize public reaction to the proposed change. 3. It is noted that no Minnesota City has changed from an Open system to a Closed system since 1990…the year when the Legislature enacted the requirement for the 180-day period for public input. 4. However, it is also noted that, while only about 30% of Minnesota cities are operating “closed” system, nationally about 70% of all cities do so. 5. According to the MPCA report, the average fees charged to customers in “Organized “ cities are lower than in “Open systems. 8.1B Page 5 Goals The Committee agreed that our goal is to be a city, proactive and committed to being “Economically Green”, improving the City’s environment, while promoting a possible lower cost of service with high efficiency, adding more safety in our neighborhoods and conserving our streets. Recommendation The Citizen Long-Range Improvement Committee (CLIC) recommends that the City Council hold a public hearing and pass a resolution of intent to organize the garbage collection system consistent with the goals outlined in the Solid Waste Collection System study which are to be a city, proactive and committed to being “Economically Green”, improving the City’s environment, while promoting a possible lower cost of service with high efficiency, adding more safety in our neighborhoods and conserving our streets. 8.1C MPCA SOLID WASTE COLLECTION REPORT PRESENTATION Page 6 2009 Analysis of Waste Collection Service Arrangements Peder Sandhei MPCA position 8.1C Page 7 MPCA has not developed a policy position on organized collection This study and previous studies speak for themselves State law offers organized collection to Cities and Counties (115A.94 Organized Collection) Regulation (ordinances) and “market participation” (contracting) are legitimate roles for local government §115A.94 Organized Collection 8.1C Page 8 Cities and towns may organize collection Counties may require cities and towns to organize Detailed timeline that must be followed – including a 180 day notice period prior to implementation Organized system that is developed must not impair recycling or recycling markets 8.1C Page 9 Use of the Organized Collection Statute Typical Process: City expresses interest in organizing Staff work along with a committee Haulers involved, generally opposed Residents express desire for freedom of “Choice” Councils discuss and decide not to proceed No city in MN has changed from open to organized collection since 1991 Typical Municipal Goals 8.1C Page 10 “City expresses interest in organizing” because… Reduce Amount of Truck Traffic & Related Impacts Reduce Monthly Cost / Rates per Household Improve Program Outcomes & Standardize Services Improve Management of Waste According to SWM Plans & Hierarchy Typical Hauler Goals 8.1C Page 11 Haulers generally oppose organizing because… Haulers want to protect their business interests Favor free market – customer choice Risk loss of customers, impacts growth, possible impact to company value Raise issue of “Just Compensation/Inverse Condemnation” Scope of work for MPCA study 8.1C Page 12 Literature Review Compare open (subscription) verses organized collection systems in Minnesota Look at economics, outcomes, energy, recycling, & other issues Survey cities over 10,000 population Perform in depth analysis of 10 larger cities Draw conclusions Literature review Minnesota has fewer organized communities 8.1C Page 13 MN (29%1) vs. Nationwide (72%2) National literature consistently showed lower cost for organized collection Minnesota studies done between 1993 and 2004 show lower cost for organized collection Organized collection also affects noise, road wear, air emissions & fuel consumption 1 Barone, Michael. Dec. 2005. “Report on Residential Municipal Solid Waste Collection.” City of Eden Prairie, MN. “Summary of Key Results from SERA’s 2008 Solid Waste and Recycling Survey. Mar. 2008. Skumatz Economic Research Assoc., Inc. Superior, CO. 2 Historical Rate Survey Example 8.1C Page 14 (2003-2004 - Falcon Heights Rate Study) Type 30 Gal 60 Gal 90 Gal Falcon Heights (average of 6 companies) Open $13.59 $15.56 $17.17 Roseville (average of 7 companies) Open $12.85 $14.90 $16.84 Maplewood (average of 9 haulers) Open $12.19 $14.11 $16.08 City North St. Paul, 2003 Organized $8.07 $8.86 $10.39 Shakopee, 2004-2005 Organized $8.60 $10.65 $12.24 Little Canada, 2002 (most recent rates listed) Organized $8.29 $9.77 White Bear Lake Organized $7.50 $11.00 $15.00 Stillwater, 3 years ending 12/31/05 Organized $8.16 $10.06 $12.03 $11.29 Overall Survey – Average Monthly Rates Charged to Residents 8.1C Page 15 Average Monthly Rate Collection System 30 Gallon 60 Gallon 90 Gallon Open MSW $22.64 $25.46 $25.46 Organized MSW $14.83 $16.98 $22.23 Difference $7.81 $8.48 $3.23 % Change +34.5% +33.3% +12.7% 8.1C Page 16 City of Robbinsdale City Billing vs. Monthly Rate Paid to Contractor 2008 Rate Schedule 30 Gallon 60 Gallon 90 Gallon City Monthly Billing $19.19 $21.81 $24.61 Total Paid to Hauler $12.19 $13.62 $15.04 Difference $7.00 $8.19 $9.57 8.1C Page 17 City of Robbinsdale Contract Services Weekly garbage collection Every other week recycling Unlimited yard waste collection April to November Dispose one Christmas tree Bulky waste collection (Mattresses, Furniture, Carpet) Hauler pays disposal costs “Free” service at 6 city facilities 8.1C Page 18 Robbinsdale Extra Funds Cover State taxes, county taxes, administrative cost Operation of a drop-off facility Code enforcement related to solid wastes Payment to annual CIP for road improvements ($150,000 in 2008) Impact on Roads 8.1C Page 19 1City of Falcon Heights attributed the impact of garbage trucks on roads as: High in alleys (~86% of impact due to garbage trucks) Low in heavily traveled areas (~8% due to garbage trucks) 2City of Roseville noted $20 to $40 per household per year from garbage trucks ($188,000 to $376,000) 3City of Oakdale reported an estimate of $120,000 to $300,000 per year 1“Organized Collection Study – Final Report.” Oct. 2004. Falcon Heights, MN. 2“City of Roseville, Solid Waste and Recycling Report” 2002. Residential Solid Waste and Recycling Advisory Committee. Roseville, MN. 3“Final Report: Study on Public Collection.” Apr. 2002. Ramsey & Washington Counties. Impact on Recycling 8.1C Page 20 Analysis of SWMCB Re-TRACTM data found an increase in recycling pounds per household in cities with organized recycling collection (95% significance) Open MSW/Open recycling = 510 pounds Open MSW/Org. recycling = 583 pounds Org. MSW/Org. recycling = 573 pounds Average for Org. recycling = 579 pounds 8.1C Page 21 Field Observations Fuel Use in Open & Organized Comparisons 650 600 586 582 550 Distance per household serviced 500 Actual Distance per Household Total route 450 Feet 400 350 315 291 300 275 250 200 150 118 112 100 86 123 83.7 50 0 Eagan Duluth Rochester Woodbury St Paul 8.1C Page 22 Factors affecting increased fuel use City of Eagan has one hauler with over a 60% market share resulting in relatively lower relative fuel use City of St. Paul has the most haulers with relatively lower market shares (highest ~25%) resulting in higher relative fuel use Fleet Characteristics, Automated Collection, Recyclable Sort Style, Routing Efficiency, etc. 8.1C Page 23 Percentage of Increased Fuel Use Increased Fuel Use – Existing System vs a Single Hauler for MSW City % More Fuel Eagan Duluth Roch. Wdbry. St.Paul 216% 294% 250% 355% 437% 8.1C Page 24 Twin Cities Hauler market share 1995 to 1999 – large firms grow Hauler types 1995 1999 Difference Public 9% 9% 0 Independent 72% 43% (29%) loss Consolidated (Waste Management, Allied, Veolia) 19% 48% (29%) gain 8.1C Page 25 Conclusions of Study Average monthly household rates are lower in organized systems vs. open systems Recycling capture rates are generally higher in organized (recycling) systems Road wear, fuel consumption, air pollution, truck traffic, and noise are reduced by organized collection Private haulers strongly oppose organized collection 8.1C Page 26 Items for Consideration Organized collection requires a major commitment to implement & then effective contracting No city in MN has changed from open to organized collection since 1991 This study has renewed city interest in the issue MPCA staff is also available to provide background information for organics and recycling collection 8.1C Page 27 2009 Analysis of Waste Collection Service Arrangements http://www.pca.state.mn.us/oea/lc/collectionservice.cfm PowerPoint Prepared by: Peder Sandhei – Prevention and Assistance Division 651-757-2688 or peder.sandhei@state.mn.us 1 8.1D MN ORGANIZED COLLECTION STATUTE Page 28 MINNESOTA STATUTES 2010 115A.94 115A.94 ORGANIZED COLLECTION. Subdivision 1. Definition. "Organized collection" means a system for collecting solid waste in which a specified collector, or a member of an organization of collectors, is authorized to collect from a defined geographic service area or areas some or all of the solid waste that is released by generators for collection. Subd. 2. Local authority. A city or town may organize collection, after public notification as required in subdivision 4. A county may organize collection as provided in subdivision 5. Subd. 3. General provisions. (a) The local government unit may organize collection as a municipal service or by ordinance, franchise, license, negotiated or bidded contract, or other means, using one or more collectors or an organization of collectors. (b) The local government unit may not establish or administer organized collection in a manner that impairs the preservation and development of recycling and markets for recyclable materials. The local government unit shall exempt recyclable materials from organized collection upon a showing by the generator or collector that the materials are or will be separated from mixed municipal solid waste by the generator, separately collected, and delivered for reuse in their original form or for use in a manufacturing process. (c) The local government unit shall invite and employ the assistance of interested persons, including persons licensed to operate solid waste collection services in the local government unit, in developing plans and proposals for organized collection and in establishing the organized collection system. (d) Organized collection accomplished by contract or as a municipal service may include a requirement that all or any portion of the solid waste, except (1) recyclable materials and (2) materials that are processed at a resource recovery facility at the capacity in operation at the time that the requirement is imposed, be delivered to a waste facility identified by the local government unit. In a district or county where a resource recovery facility has been designated by ordinance under section 115A.86, organized collection must conform to the requirements of the designation ordinance. Subd. 4. Cities and towns; notice; planning. (a) At least 180 days before implementing an ordinance, franchise, license, contract or other means of organizing collection, a city or town, by resolution of the governing body, shall announce its intent to organize collection and invite the participation of interested persons, including persons licensed to operate solid waste collection services, in planning and establishing the organized collection system. (b) The resolution of intent must be adopted after a public hearing. The hearing must be held at least two weeks after public notice and mailed notice to persons known by the city or town to be operating solid waste collection services in the city or town. The failure to give mailed notice to persons or defect in the notice does not invalidate the proceedings, provided a bona fide effort to comply with notice requirements has been made. (c) During a 90-day period following the resolution of intent, the city or town shall develop or supervise the development of plans or proposals for organized collection. During this 90-day planning period, the city or town shall invite and employ the assistance of persons licensed as of the date of the resolution of intent to operate solid waste collection services in the city or town. Failure of a licensed collector to participate in the 90-day planning period, when the city Copyright © 2010 by the Office of the Revisor of Statutes, State of Minnesota. All Rights Reserved. 8.1D Page 29 2 MINNESOTA STATUTES 2010 115A.94 or town has made a bona fide effort to provide the person the opportunity to participate, does not invalidate the planning process. (d) For 90 days after the date ending the planning period required under paragraph (c), the city or town shall discuss possible organized collection arrangements with all licensed collectors operating in the city or town who have expressed interest. If the city or town is unable to agree on an organized collection arrangement with a majority of the licensed collectors who have expressed interest, or upon expiration of the 90 days, the city or town may propose implementation of an alternate method of organizing collection as authorized in subdivision 3. (e) The city or town shall make specific findings that: (1) describe in detail the procedures it used to plan and to attempt implementation of organized collection through an arrangement with collectors who expressed interest; and (2) evaluate the proposed organized collection method in light of at least the following standards: achieving the stated organized collection goals of the city or town; minimizing displacement of collectors; ensuring participation of all interested parties in the decision-making process; and maximizing efficiency in solid waste collection. (f) Upon request, the city or town shall provide mailed notice of all proceedings on the organization of collection in the city or town. (g) If the city or town and all the persons licensed to operate mixed municipal solid waste collection services and doing business in the city or town agree on the plan, the city or town may implement the plan without regard to the 180-day period specified in paragraph (a). Subd. 5. County organized collection. (a) A county may by ordinance require cities and towns within the county to organize collection. Organized collection ordinances of counties may: (1) require cities and towns to require the separation and separate collection of recyclable materials; (2) specify the material to be separated; and (3) require cities and towns to meet any performance standards for source separation that are contained in the county solid waste plan. (b) A county may itself organize collection under subdivision 4 in any city or town that does not comply with a county organized collection ordinance adopted under this subdivision, and the county may implement, as part of its organized collection, the source separation program and performance standards required by its organized collection ordinance. Subd. 6. Organized collection not required or prevented. (a) The authority granted in this section to organize solid waste collection is optional and is in addition to authority to govern solid waste collection granted by other law. (b) Except as provided in subdivision 5, a city, town, or county is not: (1) required to organize collection; or (2) prevented from organizing collection of solid waste or recyclable material. (c) Except as provided in subdivision 5, a city, town, or county may exercise any authority granted by any other law, including a home rule charter, to govern collection of solid waste. Copyright © 2010 by the Office of the Revisor of Statutes, State of Minnesota. All Rights Reserved. 8.1D Page 30 3 MINNESOTA STATUTES 2010 115A.94 Subd. 7. Anticompetitive conduct. (a) A political subdivision that organizes collection under this section is authorized to engage in anticompetitive conduct to the extent necessary to plan and implement its chosen organized collection system and is immune from liability under state laws relating to antitrust, restraint of trade, unfair trade practices, and other regulation of trade or commerce. (b) An organization of solid waste collectors, an individual collector, and their officers, members, employees, and agents who cooperate with a political subdivision that organizes collection under this section are authorized to engage in anticompetitive conduct to the extent necessary to plan and implement the organized collection system, provided that the political subdivision actively supervises the participation of each entity. An organization, entity, or person covered by this paragraph is immune from liability under state law relating to antitrust, restraint of trade, unfair trade practices, and other regulation of trade or commerce. History: 1987 c 348 s 27; 1989 c 325 s 26,27; 1990 c 600 s 1,2; 1991 c 337 s 46; 1993 c 249 s 20,21 Copyright © 2010 by the Office of the Revisor of Statutes, State of Minnesota. All Rights Reserved. 8.1E SAMPLE GARBAGE BILL SUMMARY Page 31 Sample of Garbage Pricing in Brooklyn Park Hauler A B C A A A D A A B A D E F B A B A B B ? Statement Date Jun-11 Aug-11 Jun-11 Jul-11 Jul-11 May-11 Jul-11 Mar-11 Jun-11 Sep-11 Dec-11 Mar-11 Jul-11 Sep-11 Jun-11 May-11 Sep-11 Jun-11 Sep-11 Sep-11 ? Cart 60 gal 30 gal 90 gal 30 gal 90 gal 60 gal 60 gal 60 gal 90 gal 90 gal 30 gal 30 gal 60 gal 60 gal 60 gal 60 gal 90 gal 90 gal 60 gal 90 gal 60 gal Published Garbage Base Rate to City $14.50 $12.49 $20.00 $13.50 $15.50 $14.50 $12.95 $14.50 $15.50 $14.99 $13.50 $10.95 $15.00 $15.00 $12.99 $14.50 $14.99 $15.50 $12.99 $14.99 Actual Bill Fuel/Env. Total Actual Base Vs. Base Rate Charge Excluding Tax Published Rate $19.55 $2.24 $21.79 34.83% $17.75 $2.59 $20.34 42.11% $16.84 $0.00 $16.84 -15.80% $17.78 $1.99 $19.77 31.70% $14.50 $1.61 $16.11 -6.45% $15.50 $1.79 $17.29 6.90% $11.99 $2.73 $14.72 -7.41% $14.50 $1.79 $16.29 0.00% $16.50 $1.89 $18.39 6.45% $16.00 $2.38 $18.38 6.74% $11.49 $1.41 $12.90 -14.89% $10.95 $2.47 $13.42 0.00% $22.32 n/a $21.50 $6.01 $27.51 43.33% $10.67 $1.62 $12.29 -17.86% $17.50 $2.02 $19.52 20.69% $10.50 $1.56 $12.06 -29.95% $15.50 $1.78 $17.28 0.00% $16.25 n/a $15.50 $2.31 $17.81 3.40% $9.11 n/a Average 5.77% Total Versus Reported Base Notes 50.28% 62.85% -15.80% 46.44% 3.94% 19.24% 13.67% 12.34% Called - rate dropped from $19.37/mo. 18.65% 22.62% -4.44% Annual billing $12 discount 22.56% 48.80% 83.40% -5.39% 34.62% -19.55% 3 year contract with $3.50/mo discount 11.48% 25.10% 18.81% 1 hauler for townhome association 22.48% 8.1F BASIC SERVICES SCHEDULE (PUBLISHED GARBAGE RATE) Page 32 2011 City of Brooklyn Park - LICENSED RESIDENTIAL HAULERS BASIC SERVICES SCHEDULE for CURBSIDE GARBAGE COLLECTION (These rates do not include State or County Environmental fees and surcharges or Hauler Special Offers or Promotions) LICENSED HAULER Ace Solid Waste 6601 McKinley St NW Ramsey , MN 55303 763-427-3110 Allied Waste Systems 8661 Rendova St NE Blaine, MN 55014 763-784-2104 Budget Waste Systems 3516 East Lake St Minneapolis, MN 55406 763-231-2005 GarbageMan, Inc. 13895 Industrial Park Blvd Suite 100 Plymouth, MN 55441 763-269-8182 Randy’s Sanitation 4351 Highway 12 SE P.O. Box 169 Delano, MN 55328 763- 479-3335 Walters P.O. Box 67 Blaine, MN 55434 763-780-8464 Walz Bros. 17 3rd. Ave. NE Osseo, MN 55369 763-493-3474 Per-Month (small cart) Per-Month (medium cart) Per-Month (large cart) Discount 38 gal cart 65 gal cart 96 gal cart Call for details $12.49 $12.99 $14.99 32 gal cart 68 gal cart 95 gal cart $14.00 $15.00 $16.00 35gal cart 65 gal cart 95 gal cart $10.95 $12.95 $14.95 36 gal cart 64 gal cart 96 gal cart $17.00 $19.00 $20.00 35 gal cart 65 gal cart 95 gal cart $10.95 $12.95 $14.95 38 gal cart 68 gal cart 94 gal cart $13.50 $14.50 $15.50 32 gal cart (seniors) 64 gal cart 90 gal cart $13.00 $15.00 35 gal cart 64 gal cart 96 gal cart $13.00 $15.00 $17.00 Cart Removal Fee Fuel Surcharge Yes/No? No Yes Call for monthly specials. No Yes Call for details No No Call for details No No Less than 12 months of service a flat $35 fee Yes Charges for yard waste, bundled brush & extra garbage (for large items/special items call your hauler) Call for details. Call for details. Call for details. Call for details. Sr. Cit= 10% Inquire about specials. No Yes Call for details. Call for details. No No No Call for details $12.00 Waste Management 10050 Naples St NE Blaine, MN 55449 952-890-1100 Inquire about specials. $30 fee + tax gasoline fee Yes Call for details Please note, prices are subject to change and do not include taxes or fees unless stated. Some haulers may also add a fuel surcharge or require a contract. Inquire about services and offers that may be available from haulers. CALL THE HAULER FOR DETAILS AND EXACT COSTS. I:\RECYCLE\HAULER\Rates\2011\Brooklyn Park Rates - 2011.doc 8.1G AVERAGE GARBAGE PRICING... Page 33 Average Garbage Pricing from Sample of City Staff Living in Brooklyn Park Hauler B A A D A A D A E F B A B ? C A A B B A B Published Garbage Base Rate to City $12.49 $13.50 $13.50 $10.95 $12.61 Statement Date Aug-11 Jul-11 Dec-11 Mar-11 AVG Cart 30 gal 30 gal 30 gal 30 gal 30 gal Actual Bill Fuel/Env. Total Base Rate Charge Excluding Tax $17.75 $2.59 $20.34 $17.78 $1.99 $19.77 $11.49 $1.41 $12.90 $10.95 $2.47 $13.42 $14.49 $2.12 $16.61 Jun-11 May-11 Jul-11 Mar-11 Jul-11 Sep-11 Jun-11 May-11 Sep-11 ? AVG 60 gal 60 gal 60 gal 60 gal 60 gal 60 gal 60 gal 60 gal 60 gal 60 gal 60 gal $14.50 $14.50 $12.95 $14.50 $15.00 $15.00 $12.99 $14.50 $12.99 $14.10 $15.89 Jun-11 Jul-11 Jun-11 Sep-11 Sep-11 Jun-11 Sep-11 AVG 90 gal 90 gal 90 gal 90 gal 90 gal 90 gal 90 gal 90 gal $20.00 $15.50 $15.50 $14.99 $14.99 $15.50 $14.99 $15.92 $16.84 $14.50 $16.50 $16.00 $10.50 $15.50 $15.50 $15.05 $19.55 $15.50 $11.99 $14.50 $2.24 $1.79 $2.73 $1.79 $21.50 $10.67 $17.50 $6.01 $1.62 $2.02 Actual Base Vs. Published Rate 42.11% 31.70% -14.89% 0.00% 14.73% Total Versus Reported Base Notes 62.85% 46.44% -4.44% Discount of $1/mo. for yearly payments 22.56% 31.85% 34.83% 6.90% -7.41% 0.00% n/a 43.33% -17.86% 20.69% n/a $2.60 $21.79 $17.29 $14.72 $16.29 $22.32 $27.51 $12.29 $19.52 $16.25 $9.11 $17.71 50.28% 19.24% 13.67% 12.34% 48.80% 83.40% -5.39% 34.62% 25.10% 11.50% 31.34% $0.00 $1.61 $1.89 $2.38 $1.56 $1.78 $2.31 $1.65 $16.84 $16.11 $18.39 $18.38 $12.06 $17.28 $17.81 $16.70 -15.80% -6.45% 6.45% 6.74% -29.95% 0.00% 3.40% -5.09% -15.80% 3.94% 18.65% 22.62% -19.55% 11.48% 18.81% 5.74% Townhome Assoc. Discount of $3.50/mo. for 3 yr. contract 8.1H BROOKLYN PARK COMPARISON TO ORGANIZED CITY Page 34 Price Comparison of Organized City (Blaine) and Brooklyn Park Sample Service 30 gal 60 gal 90 gal* Blaine $8.15 $11.65 $13.65 Published Garbage Rate Average Price $12.99 $14.42 $16.05 Brooklyn Park Sample Published Garbage Sample Garbage Bill Garbage Bill Average Rate Average Price Vs. Average Price Vs. Blaine Price Blaine $16.61 59.39% 103.80% $17.71 23.78% 52.02% $16.70 17.58% 22.34% Note: *Blaine's 90 gallon service includes unlimited trash and bulk pick up of furniture and brush