At the November 15, 2015 Village Board meeting, the Board decided to accept Groot’s proposal for solid waste collection. That discussion was limited to the selection of the provider. At this time, the Board must provide direction on the various alternatives Groot proposed. There are alternatives both for refuse service and landscape waste stickers, as well as the duration of the contract.
REFUSE SERVICE
The following are the alternatives for Refuse Service. All pricing is for standard curbside collection.
Alternative #1 – Status Quo - Twice per Week Refuse Collection
Current price: $25.21 (Includes SWI)
Proposed price: $21.75 (Includes $6 SWI)
Difference is $3.46 for annual resident savings: $41.52 (14%)
Total annual savings for all residents: $757,449
Pros:
· Savings for all residents
· No change in level of service
· No change in days of collection
· Senior discount remains at 25%
Cons:
· No refuse carts included. Optional refuse cart rental is $2.50/month
· No decrease in the amount of truck traffic and emissions
· Same level of wear and tear on Village streets
Alternative #2 – Once per week with Option to Subscribe for Second Refuse Collection
Current price: $25.21(Includes SWI)
Proposed once per week price: $17.50 (Includes $6 SWI)
Difference: $7.71 for annual resident savings: $92.52 (31%)
Proposed option for twice per week subscription: $24.50 (Includes $6 SWI)
Difference: $0.71 for annual resident savings: $8.52 (3%)
Total annual savings for all residents is dependent on subscription rates
Pros:
· Savings for most residents
· Everyone gets the level of service they want.
· Refuse carts are provided to all residents at no charge (Resident choice of 35, 65 or 95 gallon)
· Potentially less wear and tear on Village streets (less stops)
· Refuse, recycling and landscape waste are collected on the same day
· Residents have the option to change frequency of refuse collection throughout the contract
Cons:
· Senior discount reduced from 25% to 15%. A 9% increase in pricing from current senior discount pricing.
· Residents may have storage issues with refuse cart
· Collection day for recycling and landscape waste may change
Alternative #3 – Once per Week Refuse Collection
Current price: $25.21 (Includes SWI)
Proposed price: $17.50 (Includes $6 SWI)
Difference: $7.71 for annual resident savings: $92.52 (31%)
Total annual savings for all residents: $1,687,842
Pros:
· Highest savings for all residents
· Refuse carts are provided to all residents at no charge (Resident choice of 35, 65 or 95 gallon)
· Reduction in truck traffic and emissions
· Less wear and tear on Village streets
· Refuse, recycling and landscape waste are collected on the same day
Cons:
· Decrease in level of refuse service
· Residents may have storage issues with refuse cart
· Collection day for recycling and landscape waste may change
· Senior discount reduced from 25% to 15%. A 22% savings from current senior discount pricing is still realized.
Savings Analysis
An Arlington Heights resident with a home valued at $300,000 currently pays $925 in property taxes a year to the Village. Under Alternative #1, a reduction by $41.52 in their garbage bill is the equivalent of a 4.5% reduction in the Village portion of their property tax bill. In Alternative #2, for the twice per week subscription, a reduction of $8.52 is the equivalent of a 0.9% reduction in the Village portion of their property tax bill. In Alternative #3, a reduction by $92.52 is the equivalent of a 10% reduction in the Village portion of their property tax bill.
Results of Request for Opinions from Residents
After the selection of Groot for the upcoming contract, the Village solicited opinions from residents on which level of service they preferred through the Village’s website, Village subscription email blast, calls received from residents, Facebook and Twitter. The results are as follows (note that this is not a scientific survey):
Total Opinions Received = 672
Alternative #1 – Twice per Week Refuse Collection 34%
Alternative #2 – Option to Subscribe for 2nd Refuse Collection 16%
Alternative #3 – Once per Week Refuse Collection 50%
Impact of Garbage Truck Loads on Asphalt Streets
Attached is the memo from the Engineering Department regarding the effects of garbage trucks on asphalt streets. Information from this memo was presented to the Village Board at the August 31, 2015 Committee-of-the-Whole meeting. This report states that an empty refuse truck does as much damage to the roads as 1,000 passenger vehicles. Two other published studies on this topic can be viewed at the web links listed as attachments.
One Trustee asked if it was possible to determine if road damage was greater in areas at the end of routes. Groot stated that this is difficult to determine because truck weights fluctuate on routes each day. Trucks are not always heaviest at the end of the route, since they routinely have to make more than one trip to the transfer station during the day. Also, the route supervisor directs trucks to help on other routes as needed due to truck malfunctions, slower/faster drivers, heavier/lighter loads, etc.
LANDSCAPE WASTE STICKER
Due to resident concerns about leaf disposal, Groot’s proposal includes options for landscape waste stickers.
Standard Landscape Waste Sticker
Groot has proposed to keep the standard landscape waste sticker at $2.30 for the first year of the contract.
Pro:
· The sticker price is below the current SWANCC average of $2.58 (2015)
Con:
· Residents who opt to “bag and tag” leaves will continue to have to spend more in November and December on landscape waste stickers
Universal Landscape Waste Sticker
Groot’s proposal also includes the option for a “universal” landscape waste sticker at $2.60. Under this option, during the leaf collection season only (November 1st through December 15th), residents will be allowed to place one sticker for every two bags of landscape waste set out for collection.
Pro:
· The residents get a two-for-one value from November 1st to December 15th
Cons:
· The sticker price is $0.30 higher than the current price
· Residents may stockpile leaves until November 1st
· Residents with trees that drop leaves early may not utilize the two-for-one program
(Groot provides the residents of Lindenhurst with a “universal” landscape waste sticker at $3.15 each.)
While Groot was able to provide the Village with the number of landscape waste stickers that they sell to area vendors, broken down by month, there is no data to show how many landscape waste stickers residents use during November and December.
DURATION OF CONTRACT
The previous solid waste contract was a five-year contract with the option to negotiate one five-year extension. Groot offered to negotiate terms for a ten-year contract. The Solid Waste Agency of Northern Cook County recommends signing a five-year contract with the option to negotiate one five-year extension. Staff does not believe that there is a compelling reason to opt for a ten-year contract and will be moving forward with a five-year contract.
ACTION
At this time, in order to finalize the contract, Staff needs direction from the Village Board on the following two issues:
1. Landscape Waste Sticker pricing:
· Remain at $2.30 (for year one of the contract) or
· Universal landscape waste sticker at $2.60
2. Refuse Service Alternative:
· twice per week or
· once per week with the option to subscribe for twice per week or
· once per week