DATE: November 4, 2015
TO: Budget & Finance Committee
Board of Mayor and Aldermen
FROM: Michael Walters Young, Business Process Improvement Manager
Becky Caldwell, Director, Sanitation & Environmental Services
SUBJECT:
title
Cost of Services Analysis - Sanitation & Environmental Services Collection Division
body
Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the cost of service analysis for the collection division of the Sanitation and Environmental Services Fund.
Background
Over the summer and fall, staff has worked on a service-by-service analysis of the collections offerings made by the Sanitation and Environmental Services Department. The goal of this analysis is to illustrate the cost of each type of service to the customer consuming the service. The SES fund has, historically, required a subsidy of at minimum $500,000 from the General fund to operate. Currently the City charges $16.50/month for residential collection services - inclusive of standard collection, yard waste, bulky waste and special event collections. In addition, the City charges commercial customers for door to door collection. The reason for the study was to see if a particular service was disproportionately costing more than another, and if an overall rate increase is required or targeted increases or tapering of services in order to achieve the overall financial goal of the system: self-sufficiency.
The analysis provided herein divides the Collection services into five main services:
- Refuse / Automated Collection
- Recycling / Blue Bag Collection
- Ground Trash / Yard Bag Collection
- Knuckleboom Collection
- Commercial Collection
Cost, Customer and Tonnage information is provided in detail along with a series of proposals on how to make the fund operationally self-sufficient.
Financial Impact
There is no financial impact as a result of this agenda item; however proposals included would generate additional revenue and/or reduce expenses should the BOMA direct staff to implement them.
Recommendation
rec
Staff recommends receipt of the report.