Okaloosa County BOCC — February 11, 2013 — Action Item Printout — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 16, 2013 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Public Hearing - Commercial Solid Waste Franchise DEPARTMENT: Public Works BCC DISTRICT: All STATEMENT OF ISSUE: The Board approved scheduling a public hearing to receive comment and consideration concerning the establishment of a commercial garbage collection franchise for businesses within the boundaries of its five existing residential franchise areas. BACKGROUND: The 2010 contract provided the following positive benefits to the County and its residents: -Reduced collection and disposal fees -Added floor rate on recyclables as a revenue stream -Removed plastic yard trash bags at the curb -Added electronics, treated lumber, tires as items for collection at curb as "Bulk" -Modified multi-family rates from dwelling based rates to cubic yard based -Added provisions for multi-family recycling at half the rate of garbage service In April 2011, KCI conducted a waste flow analysis identifying various mechanisms that Okaloosa County could use in better positioning itself to control the flow of waste generated within its jurisdiction. Among those options was establishing a commercial franchise which has the potential to add another 26% of the waste stream to the total waste under the county's control. Currently, the residential franchise accounts for about 28% of the waste delivered to the County’s transfer stations. With the addition of commercial waste, the county would have control over about 54% of the waste stream plus a potential 13% from self-haul and non- franchise residential. Presently, commercial waste is an open market service and can be delivered to any permitted facility. The advantage of the franchise is that the county through its purchasing power can secure competitive rates for commercial dumpster service that provides consistency and uniformity throughout the franchise areas while directing the flow of the waste to a county approved facility from which the county derives economic benefit via tip fees. In order to franchise commercial collection a three year notice to haulers potentially affected by this decision is required by law. In addition, arguments both for and against a commercial franchise must be heard during a duly noticed public hearing of the Board of County Commissioners which is scheduled for the April 16, 2013 BCC meeting in Fort Walton Beach. The notice of public hearing was advertised in the NWF Daily News on April 4 and 10. Letters were sent to potentially affected haulers the last week of February by return receipt. Given recent Board action to defer implementation of enhanced recycling (1-1-1) until the expiration of the existing contract, staff proposes to combine the advertisement of residential (including 1-1-1 or a comparable alternative to enhance recycling) and commercial collection and disposal services in one bid announcement to be awarded such that the implementation occurs after termination of the existing contract, March 2016. Benefits to customers of a commercial franchise are: • Ensures competitive rates for all commercial businesses: Currently, negotiating a price for service is the onus of a commercial establishment. Businesses located side by side may pay different fees for the same level and type of service. By establishing and competitively bidding a commercial franchise, the County can ensure that all businesses receive the best price as determined by the market, while allowing businesses to specify only the services they need. • Additional Services: The County can require a service provider to offer additional services (ex. recycling service) at competitively bid prices. • Establishes control over rate increases: Under a franchise system rate increases are governed through contact measures, usually linked to CPI. This ensures reasonable price adjustments and avoids surcharges for businesses. • Provides enforcement of quality of service: Enables the County to oversee and ensure businesses receive quality of service. Attached are copies of a resolution adopting the ordinance and an ordinance establishing a commercial franchise. Both documents have been reviewed by the County Attorney. OPTIONS: Approve/disapprove a resolution and corresponding ordinance for the purpose of establishing a Commercial Franchise for solid waste collection and disposal to be implemented upon termination of the current solid waste contract in March 2016. RECOMMENDATIONS: Staff requests approval by the Board of County Commissioners of a resolution and corresponding ordinance for the purpose of establishing a Commercial Franchise for solid waste collection and disposal to be implemented upon termination of the current solid waste contract in March 2016. RECOMMENDED BY: APPROVED BY: James D. Curry, County Administrator