DATE: August 31, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
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Presentation - Sanitation and Environmental Services
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the financial and operational results of the Sanitation and Environmental Services Fund through Fiscal Year 2015.
Background
The Sanitation and Environmental Services Fund had a challenging, busy and ultimately successful fiscal year 2015 - both financially and operationally. This agenda item, and the attached financials and presentation materials (which will be available at the meeting) will review the following areas of Sanitation and Environmental Services finances and operations:
- FY 2015 Budget vs. Estimated Actual Results of Fund 124 - SES Fund
- Review of major financial changes - including over and under performing revenues and over and under budgeted expenses
- Discussion of major operational challenges, including:
o The volume processed at our City-owned transfer station was the highest ever. In FY2015, this facility processed 81,651 tons (163,302,000 pounds), compared to 59,735 tons in FY2014 and 49,245 tons respectively. The Bi-County Solid Waste team worked hard to meet the demand for hauling the increased volume with limited resources. Throughout the year they were able to add people, trucks and equipment to better serve our needs.
- Operational Review of the implementation and sustenance of the four 10-hour day collection schedule. The transition to 4 10-hour workdays, in the Collection Division, allowed the department to move toward more efficient daily operations. The department did change the scheduled service day for approximately 25% of our residential customers. Initially, there were concerns about working after dark; thus far, we have completed all collection routes without working after dark. The department has now completed one (1) year of our new schedule and celebrated each holiday recognized by our City. The most difficult of the holidays were the Thanksgiving and Christmas weeks that include two (2) days of holiday time and the department continues to remind our customers of the shift in their collection day based on the holiday schedule. The City’s daily routes are more sustainable for the future growth expected the department will continue to maximize efficiencies with our yard waste, ground trash and knuckleboom services.
- Operational Update of the Blue Bag Recycling program. June 30, 2015 marks the end of year 5 for our blue bag, curbside recycling service. The diversion continues to increase from an average 12% in year 1 to an average 17% at the end of year 5. Participation increased from an average 40% of our residents to 57% of residents using this service at the close of year 5. The past year proved challenging with finding an alternate processing facility for our recyclables collected from curbside. In November 2014, the City finalized an agreement with Marshall County Solid Waste to process the recyclables collected in blue bags from our City residents. Although the department is now incurring the expenses associated with hauling the recyclables to the Marshall County facility, the blue bag program continues to provide the benefit of avoided costs associated with landfilling the commodities if we weren’t able to create the partnership with Marshall County.
Financial Impact
There is no financial impact as result of hearing this presentation and reviewing this agenda item. For the record, the Sanitation and Environmental Services Fund is expected to finish FY 2015 with a roughly $213,000 surplus from operations.
Recommendation
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Staff recommends receipt of the presentation.