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					                                                                       AGENDA ITEM NO. __I___

                                        MEMORANDUM


DATE:            January 20, 2007

TO:              Board of Supervisors

FROM:            Steven W. Hicks, General Services Manager

SUBJECT:         Collection of Residential Solid Waste in James City County


As the result of Tropical Storm Ernesto, and interest from the Board in providing residential curbside
collection, staff has looked at three issues in managing municipal waste. Those are the following:

      1) Curbside Trash Collection - residential solid waste
      2) Debris Management - curbside collection of bulky and yard waste
      3) Recycling - continue services of the recycling program

Curbside Trash Collection

The County does not provide curbside collection of residential solid waste and, for the most part,
residents desiring this service must contract directly with one of many service providers who operate
in the County. The following private waste haulers currently provide residential solid waste collection
services with Homeowner Associations and individual homeowners in James City County.

      Allied Waste (BFI) – Grafton, Virginia
      Ambrose Disposal Services – Mathews, Virginia
      Suburban Disposal – James City, Virginia
      Superior Disposal – New Kent, Virginia
      Waste Management – Chesapeake, Virginia

All but Suburban Disposal provide roll out carts and provide collection service weekly. Customers of
Suburban Disposal provide their own containers and receive collection service twice per week. Most
of the service providers do not include collection of bulky waste with the monthly fee. The cost for
these services range from $20 to $28 per month.

The following issues need to be considered for implementation of residential solid waste collection in
James City County.

Use of Contractor to Provide Collection Services
While Hampton, Newport News, and Poquoson use City employees and vehicles to provide collection
services, the best option for James City County for implementation of a residential solid waste
collection program is to select a private contractor through a competitive procurement process.
Section 15.2-934 of the Virginia Code imposes several requirements on the County, which make
implementation of the option of residential collection services with County employees and vehicles
impractical.
Collection of Residential Solid Waste in James City County
January 20, 2007
Page 2

One advantage of using a contractor is avoiding the capital cost of the start-up of services. As an
example, to provide service to all County residents, the purchase of roll out carts alone would exceed
$1,000,000.

While some residents in the County receive twice a week collection providing their own containers,
the most popular service is weekly collection with roll out carts. The use of roll out carts is becoming
the standard in the industry throughout the country. First, the residents tend to like the convenience of
the cart. Second, the use of carts, which are mechanically loaded into the vehicle, has had a
significant factor in the reduction of workplace injuries in the collection of residential solid waste.

Mandatory or Voluntary Program

The issue of whether the program will be mandatory or voluntary needs to be addressed. A
mandatory program is beneficial in securing the best cost of services during the procurement process.
With a mandatory program, the procurement documents can identify the number of households that
will receive the service with a high degree of certainty. The contractors can estimate their costs with a
greater degree of certainty and the County will receive the best cost proposals with a County-wide
mandatory program.

A voluntary program provides greater flexibility to the resident but makes pricing the service much
more difficult. With the number of units to be serviced an unknown, contractors will be much more
likely to provide higher costs for service due to the uncertainty. One option to mitigate the uncertainty
is for the County to guarantee a certain number of units in the program. The County, though, then
assumes the risk of securing the minimum number of customers or paying the contractor the
difference.

Another option for implementation of residential collection service is to provide mandatory collection
in some portions of the County and voluntary service on the remainder. Using the Primary Service
Area boundaries could be one means of designating which portions of the County received mandatory
service and which portions received service as requested.

Recommendation

Staff recommends that we study the cost of all options and programs based on County’s needs in
FY08 with consideration starting in FY09.




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Collection of Residential Solid Waste in James City County
January 20, 2007
Page 3

Debris Management

Collection of bulky waste needs to be discussed when considering residential solid waste collection.
James City County can either use County personnel and vehicles to provide the service or collection
of bulky waste can be included in the contract with the service provider.

County personnel and vehicles
If the County chooses to use County personnel and vehicles to provide the service, it is important to
define the scope of the service to be provided. For example, the City of Hampton provides weekly
collection of bulky wastes (including appliances), yard waste, and tires. On a typical day, the City of
Hampton has ten trucks on routes collecting residential trash and 16 knuckleboom trucks collecting
bulky waste, yard waste, and tires. In the most recent year, Hampton’s knuckleboom trucks collected
more waste than the trash collection vehicles.

York County collects bulky waste only by appointment and charges a $30 user fee for all collections.
York County owns three knuckleboom trucks with two trucks typically operating each day.

Contract with the service provider
If the County chooses to include provisions for bulky waste collection in the contract for residential
solid waste collection, there are two general approaches. First, the contractor could be required to
provide the service by appointment as requested. Second, the contractor could be required to provide
scheduled special collection several days per year. The first approach offers greater flexibility to the
resident but will increase the cost of the service.

Recommendation
It is recommended that if the County chooses to provide bulky waste collection using County
personnel and vehicles, that the York County model be used. Providing service by appointment only
and charging for all collections reduces the demand for the service and can generate revenue to cover
some or all of the cost of providing the service. York County has elected to set the fee below the
actual cost of providing the service and requires a contribution from the General Fund to cover the
cost of providing the service.

Another advantage of providing the service with County personnel and vehicles is having access to
equipment that can be used to respond to debris left behind from hurricanes or other storms. While,
the number of vehicles needed by the County to provide regular bulky waste collection would be
insufficient for a storm such as Isabel, it would likely be able to deal with the debris from a smaller
storm such as Ernesto.

For storms, the magnitude of Ernesto, staff recommends establishing an escrow account/emergency
fund within Solid Waste to respond to debris management.




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Collection of Residential Solid Waste in James City County
January 20, 2007
Page 4

Recycling

In 1989 the Virginia General Assembly passed into law House Bill 1743 requiring all localities to
recycle their waste stream; 10% in calendar year 1991, 15% in calendar year 1993, and 25% by
calendar year 1995. The requirement is an unfunded mandate. Penalties could be assessed to those
localities not in compliance with the recycling mandate. The penalties included:

    Closure of locality’s landfill or solid waste facilities until mandate is met.
    $25,000.00 daily penalty until mandate is met.
    Incarceration of locality’s highest elected official.

James City County implemented two residential solid waste services to comply with the recycling
mandate. In January 1991, former dump sites were converted into staffed, gated convenience centers
to accommodate trash and recycling collection. In November 1991, a pilot curbside recycling
program was initiated with approximately 1,200 homes participating in the service. The County
contracted Waste Management, Inc. to provide the weekly collection at a cost of $34,460
($2.29XhomeXmonthX4.5%) (VPPSA admin).

In November, 1992 the Virginia Peninsulas Public Service Authority (VPPSA) negotiated a regional
recycling five-year contract to provide curbside recycling service to the member communities at an
initial cost of $1.41XhomeXmonth. The rate increase of the contract for years two through five was
$1.52, $1.55, $1.62 and $1.69, respectively.

Currently, the County offers curbside recycling service to about 19,880 homes at a cost of $471,116
($1.89 XhomeXmonth X4.5% VPPSA admin) through a one-year contract extension that expires June
30, 2007. Graphs one and two below depict the VPPSA contract cost of the curbside recycling and
the convenience center recycling services during the past five-year contract, FY01-FY06. The
contract cost includes collection, processing, and marketing of the recyclables as well as the recycling
containers, advertising postage, printing and administrative expense. The decrease in the convenience
center contract cost is due to more efficiency in packing of recyclables in the containers resulting in
fewer collection fees per year.




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Collection of Residential Solid Waste in James City County
January 20, 2007
Page 5

The graph below compares the amount of recyclables collected curbside to the recyclables delivered
by residents to the convenience centers. Over the life of the contract period depicted, the curbside
recyclable materials collected increased an average of 8% whereas the convenience center recyclable
materials collected increased about 0.01%.


                                  Recycling Tons Collected

             6,000
             5,000
             4,000
             3,000
                                                                                     Curbside
             2,000                                                                   Drop-Off
             1,000
                  0
                      FY01     FY02     FY03    FY04     FY05     FY06
                                           Graph 3

The spreadsheets below provide the data for graphs 1, 2, and 3.




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Collection of Residential Solid Waste in James City County
January 20, 2007
Page 6

Revenues do not cover the operational expense of the convenience centers and are partially supported
by the General Fund. In FY06, revenues and expenses of operating the convenience centers reflected a
deficit of $246,382.11 as depicted below:

Revenues                                            Expenses
$208,304.00 (52,076 coupons @$4.00)                 $161,273.74 trash disposal fees
$ 1,466.90 recycled paper                           $ 19,432.00 collection fees
$ 52,790.64 recycled metal                          $ 8,146.24 container fees and rental
$262,561.54 Total Revenue                           $ 3,468.00 VPPSA administrative fees
                                                    $316,623.67 County staffing and operations
                                                    $508,943.65 Total Expenses
                                                    $262,561.54 Total Revenues
                                                    ($246,382.11)

Response to Request for Proposals

The Virginia Peninsulas Public Service Authority (VPPSA) received responses in September 2006 to
the request for proposals (RFP) for the Regional Residential Curbside Recycling Project. The cost
proposal is based on a nine-year contract starting July 1, 2007 and ending June 30, 2016. The increase
per year is based on the CPI of up to 5%. The VPPSA administrative expense is assumed at 5%.

Based on current levels of service, the FY07 curbside recycling contract cost is $471,116.00.
TVPPSA anticipates the cost for FY08 will increase to above $600,000. The proposal will provide the
following options:

        1)   Weekly collection with glass
        2)   Weekly collection without glass
        3)   Every other week with glass
        4)   Every other week without glass

Recommendation

The cost of the Solid Waste and Recycling program will continue to increase – especially the curbside
recycling program. Currently, the County provides weekly collection with glass to almost 20,000
homes. An average of 870 homes per year was added to the program during FY01-FY06 contract
period. The County has been recognized as leaders in the recycling program by offering curbside
recycling service resulting in the County exceeding (44%) of the 25% waste stream diversion
requirement (Title 10.1-1411 Code of Virginia).

As a result, staff recommends that the County study the cost of all options as part of the RFP for
FY08. In addition, study elimination of the curbside recycling service and use the Convenience
Centers. By choosing this option based on past usage, the County will continue to exceed the 25%
waste stream requirement. It should be noted, based on the projected cost for Recycling ($600,000)
and Convenience Centers operation cost ($246,382), the estimated service cost for Solid Waste and
Recycling is projected to approach $900,000 of General Funds per year.



SWH/tlc
sldwsterecyc.mem

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