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[1. Call to Order.]
AFTERNOON.I'D LIKE TO WELCOME EVERYONE, THIS BEAUTIFUL MAYDAY OUT HERE FOR OUR SPECIAL MEETING ON A SOLID WASTE DEPARTMENT, UH, FOR FISCAL YEAR 24 BUDGET AND FEE CHAINED UPDATES.
[2. Presentation and discussion of the FY2024 Solid Waste Department Budget, including rates. ]
HONORABLE CITY MANAGER, MR. RICKY, WILL START US OFF.COUNSEL, THIS IS THE NEXT IN OUR LINE OF, UH, WORKSHOP PRESENTATION.
GETTING READY FOR THE OVERALL BUDGET DISCUSSIONS.
WHERE'S KATHY? MAY 22ND, I THINK IS OUR START OF OUR BUDGET, UH, FOR OUR FULL BUDGET PRESENTATION.
BUT THIS IS ANOTHER ONE OF OUR MAJOR DEPARTMENTS, ESPECIALLY SINCE IT'S ENTERPRISE, UH, FOCUSED.
WE WANTED TO WALK THROUGH THE DIFFERENT FIVE DIFFERENT DIVISIONS OF SOLID WASTE.
IF YOU REMEMBER BACK, IT'S BEEN, UM, TWO MONTHS SINCE WE HAD THE RECYCLING PROPOSAL, UH, RE RECEIVED AND AT THAT TIME, WE'D SAY TO COME BACK LATER TO HAVE A DISCUSSION ABOUT POSSIBLE RATE CHANGES.
UH, SO THAT'LL BE PART OF THIS DISCUSSION.
THEN THE SECOND ITEM WILL BE, UM, WE PROMISED A COUPLE MONTHS AGO WHEN WE BROUGHT FORWARD SOME PROPOSED FEE INCREASES FOR OUR DEVELOPMENT SERVICES DEPARTMENTS TO TAKE THAT TO THE DEVELOPMENT IMPACT REVIEW COMMITTEE OR DIRK.
UH, AND SO WE, THAT SECOND ITEM IS FOR US TO REPORT BACK ON THAT AND HOW THEY RESPONDED AND, AND, UH, HOW THAT'LL BE IMPACTED AS WE ROLL UP TO THE NEXT BUDGET.
SO, I DUNNO, KEITH, ARE YOU KICKING US OFF OR ARE WE GOING STRAIGHT TO BOBBY? STRAIGHT TO BOBBY.
STRAIGHT TO BOBBY
NO CHANCE TO WARM UP OR STRETCH OR ANYTHING.
BOBBY MASTERSON, ASSISTANT DIRECTOR OF PUBLIC WORKS.
UH, GONNA REVIEW SOME SOLID WASTE STUFF WITH YOU TODAY AS WE KEY UP.
SO I WANNA START OFF WITH EXPLAINING A LITTLE BIT ABOUT SOLID WASTE AND HOW IT'S DIVIDED UP, AND THAT WILL HELP TO UNDERSTAND HOW WE LOOK AT THINGS AND HOW WE MANAGE THE UNIT.
SO IT'S COMPRISED OF FIVE COMPLETELY SEPARATE DIVISIONS, BUDGETARILY, OKAY? RESIDENTIAL HOUSEHOLD SERVICES, BULK PICKUP AND HOUSEHOLD HAZARDOUS WASTE IS ALL IN ONE DIVISION.
COMMERCIALS ITS OWN SEPARATE DIVISION.
RECYCLING IS A SEPARATE DIVISION ROLL OFF, WHICH IS THE BIGGER CONTAINERS.
THOSE ARE USED FOR INTERNAL SERVICES ONLY.
WE DO THOSE FOR INTERNAL CITY DEPARTMENTS.
THAT IS ALL AND ADMINISTRATIVE, WHICH IS SUPPORT, SERVICE CHARGES, ALLOCATIONS, UTILITY, CUSTOMER SERVICE EXPENSES, SALARY EXPENSES, ALL OF THOSE KINDS OF FACTORS.
SO ALL OF OUR REVENUE COMES IN THROUGH RESIDENTIAL AND COMMERCIAL CHANNELS.
THOSE ARE THE TWO DIVISIONS THAT PRODUCE REVENUE.
WE WANT TO COLLECT ENOUGH REVENUE ON THE RECYCLING FEE TO PAY THE CONTRACT.
IT'S NOT, NOT A PROFIT CENTER.
WE DON'T SEE REBATES ON ANY OF THE MATERIALS.
IT'S JUST TO MEET THE CONTRACTUAL COSTS.
THOSE ARE INTERNAL SERVICES THAT WE PROVIDE.
THAT'S THE EXPENSES INTO DOING THOSE SERVICES.
THAT'S A STRAIGHT EXPENSE CALL.
BUT WHAT THIS ALLOWS US TO DO IS LOOK AT THE RESIDENTIAL RATES, THE REVENUE AND EXPENSES, AND KEEP TRACK OF WHERE THAT INDIVIDUAL UNIT BUSINESS BUSINESS UNIT IS AND WHERE IT NEEDS TO BE.
SO RESIDENTIAL ITSELF, LAST HOUSE COUNT WAS 33,232 ACTIVE ACCOUNTS LAST MARCH, THAT NUMBER WAS 32,478.
THAT MEANS THERE ARE 20,000 ADDITIONAL CARTS OUT THERE.
NOW, THOSE ARE NOT EQUALLY SPREAD OUT.
SOME HOMES HAVE MORE THAN OTHERS.
RIGHT NOW THE RECORD IS SEVEN AT ONE HOUSE.
UM, AND IT GOES UP AND DOWN WITH THE SEASON.
SOME PEOPLE GET 'EM FOR SUMMER AND SEASONAL AND SOME PEOPLE RETURN 'EM.
WE DO HAVE A THREE MONTH MINIMUM MODEL WHERE IF THEY GET 'EM, THEY HAVE TO RETAIN 'EM THREE MONTHS OR WE'RE CONTINUALLY DROPPING THOSE OFF AND PICKING THOSE BACK UP AS PEOPLE WANT TO USE 'EM.
AND THAT'S NOT ECONOMICAL AT ALL.
OUR COST FOR EACH CART, INCLUDING TRANSPORTATION, IS $60 AND 38 CENTS.
THAT'S WHAT IT COSTS US TO BUY THAT GREEN CART.
OKAY? AND I PUT THAT IN THERE BECAUSE THAT'S $7 A CART THAT CART'S ON THE GROUND FOR 10 MONTHS BEFORE WE EVEN PAY FOR THE CART AND THE FEES WE COLLECT.
AND THAT DOESN'T INCLUDE THE WASTE THAT WE THROW AWAY IN THAT PROCESS, RIGHT? AND HOW MANY TIMES WE SERVICE IT.
IN 2014, WE WERE PAYING 43 11 A CART.
SO THEY CONTINUE TO CLIMB AND CLIMB SUBS SUBSTANTIALLY.
WE HAVE 15 TRUCKS AVAILABLE FOR RESIDENTIAL ROUTE USE, ONE BULK
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TRUCK, ONE REAR LOADER, ONE CART REPAIR AND DELIVERY TRUCK.LONGS REPAIR WHEELS, REPAIR HINGES, LIDS, AND DELIVER AND PICKUP CARTS.
MONDAYS AND FRIDAYS ARE THE HEAVIEST ROUTE DAYS.
ON THOSE DAYS, WE WILL TYPICALLY SERVICE 20 TO 25% MORE TRASH THAN ANY OTHER DAY OF THE WEEK.
PART OF THAT IS ECONOMICS AND PART OF IT IS PEOPLE LOADING TRASH BEFORE AND AFTER THE WEEKEND.
SO IT, IT CLIMBS THOSE TWO DAYS.
MONDAYS ARE TYPICALLY HEAVIEST, MAINLY BECAUSE OF RESTAURANTS OVER THE WEEKEND.
THE COMMERCIAL GUYS PICK UP ALL THE RESTAURANTS MONDAY MORNING AND THEY'RE REALLY, REALLY HEAVY.
UM, ABOUT 1100 CARTS PER TRUCK ON FRIDAY.
SO IT'S AN EIGHT HOUR DAY ROUGHLY, AND THEY'RE GONNA SERVICE 1100 CARTS IN THAT EIGHT HOUR DAY PER TRUCK.
SO IF YOU LOOK AT THE MATH, THAT'S A LOT OF MOVEMENT.
THE FLEET DROVE 19,293 MILES LAST MONTH.
THAT'S JUST THE RESIDENTIAL TRUCKS.
NOW, I DON'T WANT TO STARTLE YOU WITH FUEL ECONOMY OR ANYTHING, BUT OUR AVERAGE LAST MONTH WAS 3.1 MILES PER GALLON, AND THAT'S AN IMPROVEMENT.
RESIDENTIAL UTILIZES GPS, THE DATA UPDATES EVERY THREE SECONDS ON THE TRUCKS.
THERE'S AN EXAMPLE OF WHAT THE SCREEN LOOKS LIKE WITH THE TRUCK EN ROUTE.
WE CAN HIGHLIGHT THOSE TRUCKS, SEE HOW FAST THEY'RE MOVING, HOW HARD THEY'RE BRAKING, WHERE THEY'VE BEEN.
WE CAN TRACE THEIR ROUTE FOR THE ENTIRE DAY.
WE CAN SEE WHAT SPEED THEY WERE MOVING AT, JUST ABOUT ANY POINT ALONG THAT ROUTE.
SO WHEN SOMEBODY COMES IN AND CALLS IN AND SAYS THEY WENT RIPPING DOWN OUR STREET AND WE'RE WAY OUT OF CONTROL, WE CAN PULL IT UP AND LOOK, UH, AND SEE EXACTLY HOW FAST THEY WERE MOVING.
IF WE GET A MISSED CART CALLED IN, WE CAN TELL WHETHER OR NOT WE WERE IN THE NEIGHBORHOOD.
WE CAN TELL IF THEY DROVE BY THE HOUSE OR NOT.
WE CAN TELL WHAT TIME THEY WERE THERE.
UM, WE DO HAVE ONBOARD CAMERA SYSTEMS THAT ARE NEW TO THE TRUCKS.
THEY RECORD IN THE CAB AND OUTSIDE THE CAB ALL DAY.
AND I CAN PULL THAT DATA REMOTELY FROM MY DESKTOP IN ABOUT THREE MINUTES.
SO I CAN GET TO THE DATA PRETTY QUICK, SEE THE DATA PRETTY QUICK AND HANG ONTO IT TO SEE IF WE WERE IN THE AREA, IF WE SERVICED IT OR IF WE DIDN'T.
UM, AND IT IS ACCESSIBLE REMOTELY BY THE SUPERVISORS AS WELL AS MYSELF SO THEY CAN GET TO THAT RESIDENTIAL RATES.
SO THIS IS ONE OF THE CHALLENGES THAT WE WERE FACING IS KEEPING THE RATES BALANCED.
UM, I GAVE YOU GUYS A SHEET THAT SHOWS THE, THE BREAKDOWN OF WHAT THE RESIDENTIAL RATE IS.
THE BASE FEE IS $10 AND 50 CENTS.
OKAY? THAT IS THE BASE RESIDENTIAL RATE COST.
THE INCREASES IN 2018 THAT WERE PASSED WERE TO COVER RECYCLING, HOUSEHOLD HAZARDOUS WASTE, AND THE ADDITIONAL CART RATE WAS CHANGED FROM $5 TO $7 A CART.
HOUSEHOLD HAZARDOUS WASTE IS MUCH LIKE RECYCLING IN THAT IT IS A CONTRACTUAL OBLIGATION THAT IS A PASS THROUGH.
WE ONLY WANT TO TAKE IN ENOUGH MONEY TO MEET THE REQUIREMENTS FOR THE CONTRACT TO OFFER THE SERVICE AND, AND MOVE DOWN THE ROAD.
SO THOSE THINGS CHANGE ON THE RATES WHEN THE CONTRACTS CHANGE.
SO PART OF WHAT WE'VE GOT HERE TODAY IS THREE DIFFERENT OPTIONS TO SHOW YOU FOR THE RECYCLING AND KIND OF SEE WHICH ONES YOU LIKE AND WHICH ONES YOU'D WANNA LOOK AT FOR HOW THAT RATE INCREASE WOULD BE STRUCTURED.
H H W IS GOING OUT TO BID THE HOUSEHOLD HAZARDOUS RATE FOR THE FIRST TIME WE'VE BEEN SOLE SOURCE PROVIDER.
IN OTHER WORDS, THERE WAS ONE COMPANY THAT OFFERED THAT SERVICE FOR MY ENTIRE TIME HERE.
AND FOR THE FIRST TIME, A SECOND COMPANY HAS COME ONLINE AND WE PUT IT OUT TO BID.
AND WE'RE EXPECTING THAT BACK IN A COUPLE OF WEEKS.
WE EXPECT THAT TO WORK IN OUR FAVOR BECAUSE NOW THERE'S SOME COMPETITION.
THERE'S NOT JUST ONE SERVICE THAT'S OFFERED.
UH, AND WE WON'T KNOW WHAT THAT RATE'S GONNA BE UNTIL WE GET THE BIDS BACK IN TO GET THAT SET.
OUR SOLID WASTE RESIDENTIAL CLEARED 83 CENTS PER HOUSE PER MONTH AFTER ALL EXPENSES WERE TAKEN OUT OF THAT DIVISION IN 2022.
THAT MEANS WE WENT TO THAT HOUSE FOUR TIMES THAT MONTH AND PICKED UP THE TRASH FOR 83 CENTS A HOUSE.
HEY BOBBY, ARE YOU, CAN I JUMP IN QUICK? MM-HMM.
CAN YOU TALK BRIEFLY AND MAYBE REMIND PEOPLE WHAT IS, WHAT DO WE DO FOR HOUSEHOLD HAZARDOUS WASTE AND WHAT'S ELIGIBLE AND SURE.
SO HOUSEHOLD HAZARDOUS WASTE, WE OFFER A ONE 800 NUMBER THAT THEY CALL, THEY SEND THEM A PACKET WITH DISPOSAL INSTRUCTIONS ON IT AND BAGS.
AND THEN THEY TELL THE SERVICE WHAT THEY'RE, PICK WHAT THEY'RE DROPPING OFF
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BECAUSE THEY HAVE TO KNOW WHAT THEY'RE PICKING UP FOR THE BILL OF LADING ON THE TRUCK.IN OTHER WORDS, IF I, IF THEY TELL 'EM THEY'RE DROPPING THREE, THREE GALLONS OF PAINT AND THERE'S ADDITIONAL STUFF OUT THERE, THEY CAN'T TAKE IT CUZ IT'S NOT ON THE BILL OF LADING TO BE TRANSFERRED IN THE TRUCK.
THEY'LL TAKE THE THREE GALLONS AND THAT'S WHAT THEY'LL, THEY'LL TAKE.
SO WE HAVE TO COMMUNICATE THAT PICKUP, BUT THEY COME TO THEIR HOUSE, PICK UP THE, THE HOUSEHOLD HAZARD, JUST WASTE CHEMICALS AND THEN TAKE THEM TO BE RECYCLED OR DESTROYED, WHICHEVER IS APPROPRIATE WITH THAT PARTICULAR CHEMICAL.
SO, FERTILIZERS, PESTICIDES, UH, PAINTS, UH, ALL OF THOSE THINGS ARE PICKED UP.
SHARPS FOR PEOPLE THAT YOU KNOW, WHERE DIABETICS, THEY CAN HAVE THEIR SHARPS PICKED UP AT THE HOUSE.
UM, THEY DON'T, DON'T TAKE GASOLINE IN SOME OF THOSE KINDS OF FLAMMABLES ON THE TRUCK, BUT THEY'RE GIVEN A LIST WHEN THEY CALL IN OF WHAT THEY, WHAT CAN AND CAN'T BE ACCEPTED.
THEY ALSO TAKE HOUSEHOLD ELECTRONICS.
SO OLD TVS, VCRS, THOSE KINDS OF THINGS.
UH, AND THAT IS DONE FOR LESS THAN 60 CENTS A MONTH RIGHT NOW.
AND THERE'S UNLIMITED PICKUPS THEY CAN CALL AS MANY TIMES AS THEY NEED.
SO THERE'S NO ADDITIONAL COST.
IF I SAY I WANT IT AND I, LET'S SAY I DO IT THIS FRIDAY, CAN I CALL THE NEXT FRIDAY AND DO IT AGAIN? OR YOU CAN DO IT AS MANY TIMES AS YOU NEED TO.
AND THAT'S A SIMPLE EMAIL PROCESS THAT OCCURS AT LEAST 10 TO 12 TIMES A DAY.
I GET A VERIFICATION EMAIL TO MAKE SURE THEY'RE IN EDMOND AND ELIGIBLE FOR SERVICES.
CAUSE A LOT OF PEOPLE HAVE AN ADMIN ADDRESS, BUT THEY DON'T LIVE IN CITY LIMITS.
AND SO WE, WE RUN INTO THAT QUITE OFTEN.
ANY OTHER QUESTIONS ON THAT? COMMERCIAL SOLID WASTE.
WE OFFER 2 46 AND A YARD DUMPSTER STYLE SERVICES.
WE HAVE 1,424 TOTAL CONTAINERS IN THE SYSTEM.
MOST OF THOSE ARE SERVICED MULTIPLE TIMES A WEEK.
WE DO OFFER SIX DAY A WEEK SERVICE.
MOST OF THE TIME THAT'S A RESTAURANT, UH, OR SOMETHING WITH THAT KIND OF VOLUME.
AND WE RUN THOSE ROUTES ON SATURDAY MORNINGS TO FINISH THAT UP AND THEN RIGHT BACK ON 'EM ON MONDAY MORNING.
UM, EACH TRUCK SERVICES ABOUT 125 CONTAINERS A DAY.
WE HAVE ONE RESERVE TRUCK AND BACKUP AND ONE PARTIAL WE CALL PARTIAL RESERVE.
IT'S, IT'S MADE FOR A LIGHT DUTY SERVICE AND IT CAN BE RUN FOR THREE OR FOUR HOURS AT A TIME BEFORE IT HAS TO COME BACK IN.
SO THAT PARTICULAR FLEET IS ONE OF 'EM.
WE'RE LOOKING AT MAKING ADDITIONS TO, UM, JUST SO WE'VE GOT SOME STRONGER RESERVE IN THE FLEET ITSELF.
SOME OF THE CHALLENGES WITH COMMERCIAL SOLID WASTE, THE CONTAINER AND SHIPPING COSTS HAVE GONE WAY UP.
CONTAINER COSTS FOR EACH DUMPSTER'S GONE UP 26% SINCE 2021.
SO THE COST OF AN EIGHT YARD CONTAINER IS NOW CLOSE TO A THOUSAND DOLLARS ONCE IT HITS OUR GROUND.
UM, SHIPPING COSTS USED TO BE FIVE TO $600 FOR A TRUCKLOAD, NOW IT'S 2,500 TO $3,000 IN SOME CASES, DEPENDING ON HOW MANY WE BUY AT A TIME.
UM, AND THEY'RE CUTTING DOWN THE, THE PRODUCTION TIMES ARE GETTING CLOSER TO WHAT THEY WERE.
UM, BUT RIGHT NOW IT'S A 90 DAY LEAD TIME MINIMUM, UH, USED TO, IT WAS ON DEMAND.
YOU COULD ORDER IT TODAY AND HAVE 'EM HERE NEXT FRIDAY JUST WAITING ON THE SHIPPING COMPANY.
AND WHEN THEY QUOTE 'EM, THEY WILL QUOTE THEM WITH A PLUS COST FACTOR.
SO IF THE METAL PRICES CHANGE BETWEEN YOUR ORDER AND PRODUCTION, YOU PAY THE METAL METAL PRICE INCREASE AND THAT'S NON-NEGOTIABLE.
SO YOU GET A QUOTE, BUT THERE MAY BE A RIDER WHERE YOU HAVE TO PAY A PRICE INCREASE FOR THE METAL, THE MARKET INCREASE.
ONE OF THE THINGS THAT'S GOING ON IS A LOT MORE DENSE DEVELOPMENT IN THE DOWNTOWN CORRIDOR.
WHEN THEY ARE INCREASING THE DENSITIES ON THOSE LOTS AND INCREASING THE WAY THEY UTILIZE 'EM, IT DECREASES THE SPACE AVAILABLE FOR EVERYTHING ELSE.
UH, AND THAT'S A CHALLENGE AND IT'S BEEN DISCUSSED AND WE'VE HAD SEVERAL CONVERSATIONS AROUND THOSE THINGS.
ONE OF THE POSSIBLE SOLUTIONS WAS BUYING SOME SPECIALTY EQUIPMENT, DIFFERENT STYLES OF SERVICES, DIFFERENT TYPES OF SERVICES THAT WERE OFFERED IN THE OUTSIDE WORLD, SO TO SPEAK, NOT CITY WORLD.
UM, ALL THE OUTSIDE VENDORS ARE STOPPING THAT.
I WAS ASKED TO SPEAK AT THE SOLID WASTE ASSOCIATION OF NORTH AMERICA MEETING AS ONE OF THE GUEST SPEAKERS.
SO I TRAVELED UP AND DONE THAT AND SPEAKING TO THE COMPANIES THAT WERE THERE.
NONE OF THEM ARE GOING TO CONTINUE TO OFFER THOSE KINDS OF SPECIALTY SERVICES BECAUSE THE EQUIPMENT'S HARD TO GET.
IT'S MORE EXPENSIVE AND IT TAKES A LOT MORE MANPOWER TO RUN THOSE TYPES OF EQUIPMENT.
UM, SO TO KIND OF GIVE YOU AN EXAMPLE, SOME OF THE THINGS THAT USED TO GO ON IS THEY WOULD HAVE SMALL REAR LOAD TRUCKS AND THEY WOULD ROLL A DUMPSTER TO THE REAR LOADER AND USE A CABLE TO TIP THAT OVER INTO THE BACK OF THE TRUCK.
NOBODY'S DOING THAT ANYMORE BECAUSE A WORKER'S COMP INCREASES INJURIES, THE RISKS
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AND THE EQUIPMENT.UM, WHAT IS OFFERED IN THE OKLAHOMA CITY AREA IN SOME OF THOSE TIGHT AREAS IS A TWO YARD DUMPSTER WITH WHEELS AND THEY ROLL IT OUT AND SERVICE IT WITH A TRUCK.
THE SAME SIZES THAT WE USE THE FRONT LOAD TRUCKS.
UM, BUT THE COST ON THAT TWO YARD DUMPSTER EMPTIED ONCE PER WEEK IS TWICE WHAT OUR EIGHT YARD DUMPSTER IS ONCE PER WEEK.
SO YOU'RE LOOKING AT FOUR TO $500 FOR THAT SERVICE A MONTH AND MOST OF THOSE CASES TO GET ANY KIND OF VOLUME OUTTA THAT AREA.
EVERYTHING ELSE, IT'S GOING STRAIGHT FRONT LOAD.
LIKE WE USE THE BIG FRONT LOAD TRUCKS, THEY'RE USING THE SAME EQUIPMENT WE USE IN THE SAME STYLE WE USE.
SO THE REDUCED SPACE AREAS ARE GOING TO CONTINUE TO BE A CHALLENGE AND SOMETHING THAT WE HAVE TO LOOK AT BECAUSE THE OTHER EQUIPMENT IS JUST NOT FEASIBLE, IT'S NOT COST EFFECTIVE AND NOBODY ELSE WILL BE OFFERING IT EITHER.
SO ALONG WITH THAT, THE OUTSIDE VENDORS ARE STREAMLINING THEIR EQUIPMENT.
UM, ONE OF THE SPECIFIC AREAS WE ASKED ABOUT, UH, IN DOWNTOWN OKLAHOMA CITY AND HOW SOME OF THAT AREA IS SERVICED WAS THE WHEELER DISTRICT.
THEY WENT INTO THAT DISTRICT WITH FRONT LOADERS AND DUE TO PROPERTY DAMAGE AND INABILITY TO MOVE THE FRONT LOADERS AROUND, THEY PULLED OUT AND THEY'RE SERVICING THOSE WITH REAR LOADERS AND TWO GUYS GETTING IN AND DOING AN OLD STYLE, GETTING OUT OF THE TRUCK AND EMPTYING THE CONTAINERS BY HAND THROUGH THAT ENTIRE NEIGHBORHOOD.
UM, THE COST ON THAT IS OUTRAGEOUS.
WE STOPPED DOING THAT STYLE CONTAINER HERE.
UH, AND THE REST OF THE COMMERCIAL AREAS WHERE IT'S TIGHT LIKE THAT, THEY'RE USING TWO YARD ROLLABLE DUMPSTERS AND THEY'RE, THEY PAY A PREMIUM FOR THOSE AND THEY STILL HAVE TO BE ABLE TO GET THE SOLID WASTE TRUCK OUR SIZE IN THAT AREA TO GET TO THAT CONTAINER.
SO TO SH TO SHOW YOU HOW PROBLEM PROBLEMATIC THAT'LL BE MOST OF OUR RESTAURANTS, YOU TAKE A TYPICAL RESTAURANT, AN EIGHT YARD CONTAINER, THE BIG SQUARE DUMPSTER, RIGHT? WE WILL EMPTY THAT DAILY.
SO AN EIGHT YARD CONTAINER WILL HOLD 16 RESIDENTIAL CARTS FOR TRASH.
TO GIVE YOU AN IDEA, WE EMPTY THAT EIGHT YARD DAILY.
IF THEY WANTED THE TWO YARD ROLL AROUND SERVICE, THEY WOULD HAVE TO HAVE FOUR ROLL AROUND CONTAINERS IN THERE AND SPACE FOR THE FOUR ROLL AROUND CONTAINERS EVERY DAY.
SO THE, THE SPACE AND THE VOLUME'S GONNA CONTINUE TO BE A CHALLENGE.
SO THAT'S SOMETHING WE'LL HAVE TO WORK THROUGH.
BUT THE OUTSIDE VENDORS ARE NOT OFFERING ANYTHING THAT WE DON'T OFFER AS WELL.
BOB, DO YOU WANT TO TALK ABOUT WHAT WHAT THAT CUZ YOU KNOW, YOU'RE GOING, WHEN I FIRST GOT HERE, THE CONCERN WAS DO WE STAY IN COMMERCIAL BUSINESS BECAUSE I CALL 'EM A UNICORN TYPE OF EQUIPMENT.
YOU'RE GONNA HAVE TO GO OUT AND BUY THESE UNIQUE PIECES OF EQUIPMENT FOR REALLY NOMINAL ACCOUNTS AND DID WE STAY IN THIS BUSINESS OR NOT STAY IN THIS BUSINESS, BUT WITH THE CHANGE AND EVERYBODY CONSOLIDATING INTO A SINGLE, DOES THAT CHANGE OUR BUSINESS OUTLOOK FOR COMMERCIAL SERVICES? IT DOES.
IF WE OFFER THE SERVICE IN THE CITY OF EDMOND, THEY'RE REQUIRED TO USE IT.
THAT'S THE WAY THE, THE WAY IT'S SET UP.
SO IF WE OFFER THE BUSINESS SERVICE, IF WE OFFER COMMERCIAL, THEY'RE REQUIRED TO USE IT.
WE WERE LOOKING AT WHETHER OR NOT WE COULD BUY THE EQUIPMENT AND OFFER THAT SERVICE TO STAY IN SOME OF THOSE SPECIALTY TYPE LOCATIONS AND IF THAT WAS GONNA BE COST FEASIBLE OR NOT.
NOW THEY'RE NOT OFFERING IT EITHER.
SO THE SAME SERVICE THAT WE OFFER IS WHAT THEY WOULD BRING IN IF WE ALLOWED SOMEBODY ELSE TO COME IN AND SERVICE THOSE AREAS.
SO THERE'S NO ADVANTAGE FOR THAT WHATSOEVER.
IT'S JUST WE, WE HAVE THE, THE ABILITY TO SERVICE 'EM WITH THE PRESENT REQUIREMENTS THAT WE HAVE IN SPACE REQUIREMENTS AND THEY'RE JUST GONNA HAVE TO ADHERE TO THOSE SPACE REQUIREMENTS AND GIVE US ACCESS TO PUT A DUMPSTER CUZ THAT'S ALL THAT WOULD BE AVAILABLE WITH THE OUTSIDE SERVICES AS WELL.
DOES THAT ANSWER YOUR QUESTION? YEAH, IT WAS JUST, THE POINT IS WE WERE, WE WERE GONNA HAVE TO SPEND CONSIDERABLE AMOUNT OF CAPITAL TO BUY THESE UNIQUE VEHICLES FOR LIMITED VALUE BACK.
BUT NOW WITH THE CONSOLIDATION, WE HAVE A LONGER A CALL BUSINESS OPPORTUNITY THAN WE WERE PREVIOUSLY CONSIDERING.
AND THE LEAD TIME ON TRUCKS HAS GOTTEN SO, SO FAR OUT THAT NOBODY REALLY WANTS TO BUY ANYTHING ANYWAY, WHICH WE'LL TALK ABOUT HERE.
SO TRUCKS HAVE INCREASED OVER $60,000 A PIECE SINCE 2021.
THAT'S PER TRUCK AND THAT'S FOR A BASE MODEL TRUCK.
UH, NEW TRUCKS ARE EXCEEDING $340,000 A PIECE.
UM, OUR SERVICE, SERVICE AND MAINTENANCE HAS GONE UP $160,000 SINCE LAST YEAR.
WE'VE GOT SOME TRUCKS THAT WE'VE ORDERED THAT THEY'RE TELLING US IT'LL BE IN EXCESS OF 28 MONTHS BEFORE WE SEE THE TRUCK.
SO WE SECURE THE FUNDS, WE CUT A PO, WE ENCUMBER THE FUNDS, THEY'RE SECURED FOR THE PURCHASE, BUT IT'LL BE 28 MONTHS BEFORE WE SEE THAT TRUCK.
SO WE'LL ACTUALLY CARRY THAT THROUGH TWO BUDGET YEARS BEFORE WE SEE THE VEHICLE.
FUEL OF COSTS, YOU KNOW, FUEL COSTS HAVE GONE UP.
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PUTS GAS IN THEIR OWN VEHICLE KNOWS THAT FLEXIBILITY IN THE WASTE STREAM.WE'RE PRETTY TIED TO WHAT WE CAN DO BECAUSE WE'RE LIMITED TO WHAT WE CAN OR CANNOT DO OUTSIDE OF THE NORMAL OPERATIONS.
UM, SO WE CAN'T EXPLORE A BUNCH OF OPTIONS.
WE'RE PRETTY MUCH GONNA DO WHAT WE'VE GOTTA DO AND, AND DO IT IN THE MANNER WE'RE IN.
UH, WE CAN'T EXPLORE COMPOSTING, WE CAN'T EXPLORE ANY OF THAT.
SO WE'RE GONNA HAVE TO CONTINUE TO CONTINUE TO OFFER THE WASTE SERVICES WE OFFER AND JUST TRY TO DO 'EM AS EFFICIENTLY AS POSSIBLE.
OUR CONTRACTUAL COST FOR THE DISPOSAL OF SOLID WASTE GO UP.
OUR TOTAL DISPOSAL COSTS WERE 2.8 MILLION AND THERE'S THE TIPPING FEE PER TON.
IF YOU GUYS HAVE ANY QUESTIONS, PLEASE FEEL FREE TO ASK AS WE GO ALONG.
OKLAHOMA CITY PAYS 2168 MIDWEST CITY, 2297 IN NORMAN, 2291.
NOW ONE KEY FACTOR THERE IS THERE ARE NO TRANSPORTATION COSTS BUILT INTO THEIR NUMBERS WHEN WE DROP IT OFF.
THE TRANSPORTATION COST FROM THE TRANSFER STATION TO THE LANDFILL IS INCLUDED, BUT THAT TRIP IS 13 MILES EACH WAY.
SO THIS IS NOT AN APPLES TO APPLES TRUE COMPARISON THEN WITH THE NO, WE DON'T HAVE A WAY TO DO A TRUE COMPARISON CUZ WE CAN'T USE A LANDFILL, BUT THAT'S WHAT THE OTHER CITIES ARE GETTING CHARGED FOR TIPPING FEES AT THE LANDFILL AND OUR RATE WOULD BE COMPARABLE.
BUT WE ALSO HAVE THE TRANSPORTATION COST.
SO OUR TRANSPORTATION COST IS INCLUDED IN THE 48 37, NOT INCLUDED IN THE OTHER THREE.
THAT'S CHALLENGING TO CALCULATE IT.
IT TRANSPORTATION COSTS ARE PART OF THE CHALLENGE, BUT THEY'RE NOT THAT HIGH.
SO WHAT YOU'RE SAYING, YEAH, YOU'RE SAYING THE TRANSPORTATION COST IS NOT THE DIFFERENTIAL BETWEEN 22, 23 AND 48, CORRECT? YEAH, WE ARE, WE ARE PAYING MORE THAN OTHER PEOPLE FOR THE SAME TO GET RID OF OUR TRASH AND IF WE TRANSPORTED OURSELF, IT WOULD BE LESS THAN THAT PER TON.
HOW MANY MILES WOULD THAT MEAN? I THOUGHT I SAW A SLIDE THAT YOU SAID 18,000 MILES, FORGET EXACTLY WHAT'S WHAT WE DROVE LAST MONTH.
SO IF WE DID THAT ALL THE WAY TO OKLAHOMA CITY, THAT WOULD BE HOW MANY ADDITIONAL MILES? ABOUT 250 MILES PER TRUCK.
AND SO WHAT WOULD THAT MEAN AS FAR AS ADDITIONAL CAPITAL COSTS OR WHERE OR TEAR OPERATION COSTS ARE 147 PER HOUR FOR A TRUCK.
THAT INCLUDES LABOR, THAT INCLUDES MAINTENANCE AND THAT INCLUDES FUEL.
AND YOU'RE LOOKING AT ABOUT AN HOUR ROUND TRIP THERE AND BACK.
SO, SO WE'D HAVE TO ADD SOME ADDITIONAL TRUCKS AND SOME ADDITIONAL, UH, PERSONNEL, RIGHT? NOT IMMEDIATELY, NO, I DON'T THINK SO.
UM, THERE'S A POSSIBILITY THAT WE WOULD, ANYWAY, WE'RE GONNA HAVE TO ADD ROUTE MATERIALS ANYWAY IN THE NEXT FOUR YEARS.
UM, BUT IF YOU TAKE THE AVERAGE LOAD OF A TRUCK AT 20 TONS AND DIVIDE IT INTO THAT 140 AN HOUR ROUGHLY AT $7 A TON TRANSPORTATION COSTS, SO YOU WOULDN'T SEE FROM YOUR PERSPECTIVE, ADDITIONAL CAPITAL COSTS IN REGARDS TO WHAT WE WOULD HAVE TO BUY FOR THE CITY AS FAR AS TRUCKS AND INFRASTRUCTURE THAT HAVE GONE UP.
WE WOULD HAVE TO ADD JUST LIKE WE WOULD ANY OTHER NORMAL RATE, OUR MAINTENANCE COST WOULD INCREASE.
BUT THAT $140 AN HOUR OPERATION COST INCLUDES ALL MAINTENANCE AND FUEL FOR THE TRUCK.
DOES THAT COST LIABILITY AND INSURANCE AS WELL? WE'RE GONNA PAY LIABILITY ANYWAY, WHETHER WE PAY IT TO THE PERSON THAT'S PROVIDING THE SERVICE OR WE DO IT OURSELF, THERE'S INCREASED LIABILITY ANYWAY.
WE'RE, WE'RE DRIVING, STAYING IN EDMOND CITY LIMITS.
IT'S HERE, IT'S A QUICKER TURNAROUND AND THAT THAT IS AN ADVANTAGE.
THERE'S NO DISCUSSION AT THAT POINT.
HOWEVER, THAT COST IS SOMETHING THAT WE JUST NEED TO CONTINUALLY BE COGNIZANT OF AND WEIGH IN OUR MINDS.
SO FOR THE ADMIN RESIDENT, THE WAY IT WORKS NOW, FOR EXAMPLE, IF I WANT TO GO TO THE TRANSFER STATION, I PROVIDE A COPY OF MY BILL, RIGHT? MM-HMM.
IF WE DIDN'T HAVE THAT TRANSFER STATION, I, I WOULD HAVE TO PHYSICALLY GO TO OKLAHOMA CITY.
YOU'D GO TO THE DUMP, UH, IN MIDWEST CITY.
SO WE, WE'D BE ASKING IF WE SWITCHED TO THE MODEL THAT YOU'RE POTENTIALLY PROPOSING THAT AN EDMUND RESIDENT WOULD HAVE TO DRIVE TO MIDWEST CITY TO DUMP OFF THEIR LOAD.
THAT'S ONE OF THE FACTORS THAT WE'D HAVE TO CONSIDER.
I THINK THAT'D BE PRETTY SIGNIFICANT AS FAR AS CONVENIENCE TO OUR CITIZENS, GIVEN THAT USUALLY ONCE OR TWICE A YEAR WE'RE DOING SOME YARD PROJECT OR SOME GARAGE CLEAN OUT AGAIN OR SOMETHING THAT WE HAVE TO TAKE SOMETHING TO THE TRANSFER STATION.
AND FOR US IT'S ABOUT 15 MINUTES THERE, 15 MINUTES BACK AND GOING TO MIDWEST CITY, IT IS PART OF THE CONSIDERATION WOULD BE A SIGNIFICANT CHALLENGE.
I THINK THAT MOST RESIDENTS THAT AREN'T IN THE COMMERCIAL SIDE, BUT ARE JUST AVERAGE CITIZEN WOULD WANT TO, WOULD WANT TO AVOID.
UM, SO I THINK WHAT WE PROBABLY WOULD NEED IS JUST A BREAKOUT, NOT A GUESSTIMATION OF THE TRANSPORTATION EMBEDDED
[00:25:01]
COST.AND IN REGARDS TO, WE'D HAVE TO TALK TO OUR RESIDENTS TO SEE IF THEY WOULD BE INTERESTED IN TRAVELING TO MIDWEST CITY OR NOT TO SEE IF IT WOULD BE ON THE TABLE.
THAT'S THE DECISION THAT'LL HAVE TO BE MADE.
BUT THAT IS OUR TRUE COSTS OKAY.
AND WE'RE IN THE CONTRACT FOR FOUR MORE YEARS, I BELIEVE ANYMORE.
ANYWAY, SO IT'S, IT'S NOT AN IMMEDIATE FACTOR, BUT THAT IS THE TRANSPORTATION.
I MEAN THAT IS THE TIPPING COST AND WHAT IT COSTS US TO GET RID OF SOLID WASTE PER TIME RECYCLING SEPARATE DIVISION OF SOLID WASTE OPERATES AS A PASS THROUGH, DOES NOT PRODUCE REVENUE FOR THE CITY.
THAT IS ONE OF THE BIGGEST MISUNDERSTANDINGS.
PEOPLE THINK WE MAKE MONEY OFF OF RECYCLING.
WE DO NOT MAKE MONEY OFF RECYCLING.
THE PRESIDENT COST IS $4 AND 26 PER RESIDENT.
SO WE'RE SUBSIDIZING THAT AT 26 CENTS PER HOUSE.
NOW THE NEW CONTRACT THAT GOES INTO EFFECT JULY ONE IS $4 AND 56 CENTS PER HOUSE.
SO AS OF JULY 1ST, WE WOULD BE SUBSIDIZING AT 56 CENTS PER HOUSE UNLESS WE RAISE THAT RATE.
SO QUESTION I WOULD, I WOULD AGREE IF YOU THAT MOST RESIDENTS MIGHT MISINTERPRET THAT THERE'S SOME TYPE OF REVENUE GENERATION AVAILABLE ON RECYCLING AS WE KNOW FOR WELL OVER A DECADE NOW, ANY MARGIN, IF ANY, HAS DISAPPEARED ALMOST ON RECYCLING WHATSOEVER.
UM, I WOULD ANTICIPATE THAT MOST ADMIN RESIDENTS WANT TO RECYCLE, AS DOES MY FAMILY.
BECAUSE AS WE ARE CONSUMERS OF A LOT OF CONSUMABLES, UH, WHEN WE DROP SOMETHING IN THAT BLUE BIN, A LITTLE PART OF US SAYS, WE JUST DID SOMETHING GOOD FOR GREEN EARTH.
RIGHT? AND IT'S THAT, UH, SORT OF ME GROWING UP IN THE EIGHTIES AND NINETIES THAT DROVE THAT NARRATIVE.
UM, BUT THE ECONOMICS HAVE CHANGED PRETTY SIGNIFICANTLY WHEN WE CONTRACT WITH A, OUR RECYCLING PROVIDER.
AND RIGHT NOW WE'RE PROVIDING ASSOCIATE TO DO THAT ON BEHALF OF THE ASSISTANCE OF ADMIN.
WHAT IS THE CONTRACTUAL OBLIGATION OF THAT PROVIDER AT THE END OF ITS LIFECYCLE SO THAT WE UNDERSTAND THAT IT'S TRULY BEING RECYCLED.
WE HAVE A CLAUSE IN THE CONTRACT THAT ANYTHING THAT CAN'T BE TAKEN TO, TO THE RECYCLABLE, TO THE MERF, THE MUNICIPAL RECYCLING FACILITY HAS TO BE DISCLOSED.
THEY PROVIDE MONTHLY REPORTS WITH TONNAGE TYPES OF MATERIALS THAT WAS RECYCLED AS WELL AS YEARLY REPORTS.
WE CAN AUDIT IT ANYTIME WE WOULD LIKE.
WE CAN ASK FOR THE AUDIT SHEETS AND THE SHIPPING, SHIPPING SEAT SHEETS FOR EACH TRUCK ANYTIME WE'D LIKE.
SO THERE'S A PERCENTAGE OF THAT THAT OBVIOUSLY IS GOING BACK TO THE LANDFILL AS I THINK THE SORT OF NATIONAL AVERAGE RIGHT NOW IS ANYWHERE FROM FIVE TO 6% RECYCLABLES THAT GO INTO A BIN ARE ACTUALLY FINDING SOME SORT OF RECYCLABLE PLANT.
BUT LET'S TAKE IT A STEP FURTHER.
WE GO TO THAT RECYCLABLE PLANT AND IT'S BEING SORTED.
DO WE HAVE ANY CONTRACTUAL OBLIGATION TO UNDERSTAND WHERE THE LAST SORT OF DESTINATION OF THAT IS BESIDES THEM SAYING IT WAS RECYCLED AND SHIPPED? DO WE KNOW? WE KNOW THAT IT STAYS WITHIN THE UNITED STATES.
SO REPUBLIC SERVICES TAKES IT TO THEIR RECYCLING VENDOR, DROPS IT OFF, IT'S PROCESSED.
THAT RECYCLING VENDOR SELLS THOSE GOODS, THOSE COMMODITIES ON THE MARKET, THEY ALL STAY WITHIN THE UNITED STATES.
SO IT'S NOT POSSIBLE FOR ED ADMIN RECYCLING WASTE TO GO OVERSEAS? NO.
THE, THE, THE BAT LINER ONLY DEALS WITH REPUBLIC ON THAT ASPECT AND IT HAS TO STAY IN THE UNITED STATES.
AND THAT'S ONE OF THE THINGS THAT THEY CLAIM IN THEIR PAPERWORK AND THEY DEMONSTRATE.
SO IT'S FOR LIKE PLASTICS AT ALL TYPES OF RECYCLES.
IF IT'S ON THE APPROVED LIST, IT STAYS HERE.
IF IT'S NOT ON THE APPROVED LIST, DOES IT JUST GO TO THE LANDFILL? GOES TO THE LANDFILL.
SO IS THERE A WAY I JUST WANT TO BE ABLE TO BETTER EDUCATE OUR CITIZENS BECAUSE I THINK WE HAVE REALLY GOOD INTENTIONS AND WE'RE PAYING A LOT OF MONEY TO REINFORCE THOSE INTENTIONS.
BUT UNFORTUNATELY WHAT WE FIND IS THAT MOST OF OUR RECYCLES NOW AREN'T RECYCLABLE.
THE PLASTICS, FOR EXAMPLE, ARE NOT BEING, UH, RECYCLED.
CHINA HAS REFUSED, WHICH HAS A TERRIBLE ECONOMIC RECORD TO CONTINUE TO TAKE OUR RECYCLED PAPER.
UH, IF RECYCLING DOES SLIP INTO INTERNATIONAL, THAT'S HOW WE GET HUGE HUNDREDS OF MILLIONS OF TONS OF WASTE IN OUR OCEANS.
AND THAT'S JUST BECAUSE IT'S NOT BECAUSE I HAD A 7-ELEVEN CUP THAT THE WIND GRABBED AND THEN WENT DOWN THE STREET ADMIN AND ALL OF A SUDDEN MADE ITS WAY OFF TO VIETNAM SHORES.
IT'S BECAUSE WE DUMPED IN THE UNITED STATES TONS AND TONS AND TONS AND TONS OF OUR RECYCLABLE THERE TO CREATE ENVIRONMENTAL HAVOC.
SO I'D LOVE THAT WE DON'T SHIP IT OVERSEAS.
MY GUESS IS I WOULD LOVE TO SEE BEFORE WE VOTE, LIKE ON BUDGET, JUST LIKE WHAT THEIR PROCESS IS, THE GETTING THAT.
AND I'D LOVE TO JUST PROVIDE FROM A, A MARKETING STANDPOINT TO OUR CITIZENS, WHEN YOU PUT SOMETHING IN THE BLUE BIN, WHATEVER THAT IS, IT COULD BE 85%, 80%, 92% ISN'T BEING RECYCLED, HAS NO PLACE, IS GOING BACK INTO THE LANDFILL SO THAT WE CAN DEMONSTRATE THE TWO, THE TRUE COSTS.
MY SENSE WOULD BE IS THAT GLASS AND CERTAIN METALS HAVE A MUCH HIGHER, UH, VALUE MM-HMM.
[00:30:01]
SO WE COULD SAY TO THEM, HEY, WE'RE GONNA STOP PLASTICS BECAUSE THERE'S NO MARKET FOR IT.
AND WE COULD GO TOWARDS METAL AND GLASS AND JUST PROVIDE THAT SERVICE BECAUSE THERE'S AN ACTUAL MARKET FOR IT.
I DON'T KNOW IF THAT'S POSSIBLE.
THE RECYCLING SURVEY THAT WE GOT BACK FROM THE CITIZENS, WAS IT 60, 65 DAYS AGO? PLASTICS WERE A BIG CONCERN THAN WANTING MORE AND MORE PLASTICS RECYCLING.
THAT THAT'S A, I MEAN LIKE THAT'S A, LIKE, JUST SO WE ALL KNOW, JUST SO WE'RE ALL CLEAR, LIKE THERE'S NO MARKET FOR RECYCLABLE PLASTICS IN THE UNITED STATES.
MOST OF YOUR STUFF THAT HAS A LITTLE NUMBER ON IT CANNOT BE RECYCLED.
AND YOU'RE NODDING YOUR HEAD CUZ WE ALL KNOW EACH, BUT YOU, YOU WASH IT, THAT COSTS MORE ENERGY, YOU GET IT INTO THE MARKET AND NOBODY WANTS OUR JUNK UNLESS IT COMES FROM THE BATHROOM OR THE KITCHEN, IT'S PROBABLY NOT RECYCLABLE.
AND SO I THINK WE NEED TO BE HONEST WITH OUR RESIDENTS AS FAR AS WHAT THE PROGRAM IS, PARTICULARLY IF WE'RE LOOKING AT EITHER RAISING RATES OR SUBSIDIZING IT.
NOW IF WE GIVE THEM THAT INFORMATION AND THEY STILL WON'T WANT THAT FEELING OF DROPPING IT IN THE BLUE RECYCLE BUCKET REGARDLESS OF WHERE IT ENDS UP.
IF THE MAJORITY OF IT'S IN THE LANDFILL, I THINK THAT'S TOTALLY FINE.
BUT I THINK IT'S TIME THAT WE HAVE THAT CONVERSATION OF WHERE EXACTLY THAT STUFF ENDS UP.
WE'VE PUT SOME MARKETING MATERIALS OUT THERE, WE FURNISHED THE, THE, THE FORMS THAT TELL 'EM WHICH ONES ARE RECYCLABLE, WHAT NUMBERS ARE RECYCLABLE, WHAT ARE NOT.
UH, REPUBLIC PUT THOSE OUT AGAIN AT THE RENEWAL OF THE CONTRACT.
THE PAPERWORK WILL GO OUT, WE'LL UPDATE THE WEBSITE, THEY'LL SEND STUFF OUT AS WELL.
UH, AND WE CAN MAKE SOME VIDEOS AGAIN AND DO THAT.
UH, AND OUTSIDE OF THAT, IT'S PRETTY MUCH US POUNDING THE PAVEMENT AND TALKING TO AS MANY GROUPS AS WE CAN TO EDUCATE 'EM.
AND SO WE'VE DONE THAT AND WE'LL CONTINUE TO DO IT.
UM, IF THERE'S NOT A MARKET FOR IT, THEN THE RECYCLE RECYCLER WILL TELL US AND IN 60 DAYS WE'LL REMOVE IT FROM THE WASTE STREAM THAT'S PART OF THE CONTRACT.
IF THEY LOSE A MARKETABILITY FOR A PARTICULAR PRODUCT, THEY'LL NOTIFY US.
WE HAVE 60 DAYS TO PULL IT OUTTA THE WASTE STREAM.
LIKE THE GLASS GLASS, LIKE THE GLASS ELASTIC, RIGHT.
IT'S COMING BACK, LET THE MARKET'S BACK AND IT'S FEASIBLE.
WE'VE GOT GLASS RECYCLING PLANTS THAT ARE BACK ONLINE IN THE STATE OF OKLAHOMA.
IT NO LONGER HAS TO GO ALL THE WAY TO TEXAS TO MIDLOTHIAN TEXAS BY TRAILER TO BE TAKEN CARE OF.
AND SO, I MEAN, WHICH IS ANOTHER THING WHICH KIND OF DRIVES ME NUTS.
AND THAT IF YOU'RE TRYING TO DO SOMETHING THAT'S ENVIRONMENTALLY SUSTAINABLE AND HELPFUL, BUT THEN WE HAVE TO SHIP IT EITHER ACROSS THE COUNTRY OR POTENTIALLY OVERSEAS IS WHAT YOU WERE DOING IN THE EIGHTIES, NINETIES AND TWO THOUSANDS BY THE TONNAGE TRUCKLOAD MUNICIPALITIES.
WE WERE TRICKING OURSELVES AND THINKING THAT WE COULD BE CONSUMERS.
AND I ORDER JUST AS MANY AMAZON BOXES AS ANYBODY IN THIS ROOM IN MY FAMILY DOES LIKE.
BUT I, SO I WOULD LIKE TO KNOW SORT OF A LITTLE BIT DEEPER AND I CAN JUST MEET WITH YOU LATER AS SURE ON THAT WE CAN SET UP A MEETING WITH REPUBLIC IF YOU'D LIKE.
WE GET SOME OF THOSE QUESTIONS ANSWERED DIRECTLY AS WELL.
SO RIGHT NOW WE'RE ABSORBING THE DIFFERENCE IN THE COST.
GLASS WAS INCLUDED, UH, REPUBLIC SERVICES WAS THE RECOMMENDATION FROM STAFF.
NEW CONTRACT COST IS 4 56 PER MONTH.
UH, A RATE INCREASE WILL BE NECESSARY.
UH, THE RATE WILL INCLUDE THE DRAWS DROP THE COST FOR THE RECYCLING CENTER.
SO THE HAULING OF THE CONTAINERS AT THE DROP-OFF RECYCLING CENTER ARE INSIDE THAT CONTRACT.
THERE'S THE PROBLEM WE FACED AT THE RECYCLING CENTER, THAT'S TRASH NOT RECYCLABLES THAT WE WENT AND PULLED OUT OF THE BINS.
AND IT'S NOT UNUSUAL TO FIND WASHERS, REFRIGERATORS, AND OTHER THINGS DUMPED THERE BECAUSE PEOPLE DON'T WANT TO DO ANYTHING WITH THEM.
AT SOME POINT WE NEED TO LOOK AT EITHER A, PUTTING THAT SITE SOMEPLACE A LITTLE BIT MORE SUPERVIS OR ACCESSIBLE OR B EXPANDING IT TO TAKE SOME LOAD OFF THAT SITE OR PUTTING SOME CAMERAS UP OR MANNING THE SITE ITSELF.
UM, BECAUSE THE ILLEGAL DUMPING IS A BIG CONCERN AND WE ARE CONTINUALLY GOING IN THERE EVERY MORNING AND TAKING CARE OF LARGE QUANTITIES OF THINGS THAT HAVE NOTHING TO DO WITH RECYCLING.
HAVE Y'ALL DONE THE ANALYSIS ON THE CAMERAS? IS YOUR LOWEST SORT OF POTENTIAL OPPORTUNITY TO MITIGATE THAT? WELL THE, THE CAMERAS, WE'VE TRIED SOME EXPERIMENTATION WITH SOME GAME CAMERAS.
NETWORKING CAPABILITIES TO THAT SITE ARE MINIMAL FOR US.
UM, AND SO THERE'S SOME CHALLENGES THERE.
THE, THE ACTUAL PROSECUTION OF THAT ILLEGAL DUMPING IS DIFFICULT AT BEST EVEN WITH TAG NUMBERS.
SO UNLESS YOU PHYSICALLY RESTRICT ACCESS TO THE SITE OR CATCH THE PERSON IN THE ACT, THERE'S NOT MUCH REALLY THAT YOU CAN DO OTHER THAN CLEAN IT UP.
UM, SO WE'D LIKE TO EXPAND SOME RECYCLING FACILITIES.
WE'D LIKE TO MAN A SITE AND WE'D LIKE TO DO THAT CLOSER TO, UH, THE CENTER PART OF THE CITY WHERE IT CAN BE UTILIZED MORE.
WE HAVE GONE OUT THERE AND STOPPED AND TALKED TO PEOPLE AND JUST STRUCK UP CONVERSATIONS TO FIND OUT WHERE THEY'RE FROM.
UH, WE HAVE PULLED A LOT OF THE CARDBOARD BOXES TO FIND THE ADDRESSES ON THEM AND ROUGHLY 70%
[00:35:01]
OF THAT VOLUME IS NOT CITY OF EDMOND RESIDENCE.IT'S FROM THE SURROUNDING AREA.
WHEN WE'VE DONE THE RECYCLING SURVEY, LESS THAN 6% SAID THEY USED THAT SITE BECAUSE THEY GET HOUSEHOLD RECYCLING.
THEY'RE GOING, THEY'RE GONNA DRIVE OUT THERE UNLESS THEY'VE GOT SOME KIND OF, YOU KNOW, LARGE RUNOFF OR THEY DON'T RECEIVE THE HOUSEHOLD SERVICES.
SO WE THINK MOST OF THAT, AND THE MAJORITY OF THAT IS NON-CITY OF EDMONDS RESIDENCE OUT THERE DOING THE DUMPING AND AND UTILIZING THE SITE.
IT'S ALSO USED BY SOME BUSINESSES BECAUSE THEY DON'T WANNA PAY FOR COMMERCIAL RECYCLING AT THEIR BUSINESS.
SO THEY BRING THEM OUT THERE AND AS SOON AS WE START TAKING GLASS, WE'LL HAVE SIGNIFICANT GLASS VOLUME AGAIN OUT THERE.
SO I MEAN IT SEEMS LIKE GIVEN THOSE PARAMETERS, WE'D HAVE TO MOVE PRETTY QUICK TO SEE WHAT THE CAMERA OPTIONS WOULD BE AND THE LACK OF SORT OF PROSECUTION IS THAT LIKE, JUST BECAUSE IT'S THE DA DOESN'T WANNA PROSECUTE IT, THE POLICE DON'T WANT TO CALL.
IT'S DIFFICULT ALL THE WAY DOWN FROM DEQ UNLESS IT'S LIKE A MASSIVE OFFENSE.
UNLESS THEY'VE, THEY'VE GOT YOU REPEATING.
SO ONE OF THE, ONE OF THE TENANTS TO TO PROSECUTING WAS TO FIND THREE PIECES OF MATERIAL WITH NAMES AND ADDRESSES ON IT BEFORE YOU COULD TAKE PICTURES AND PROSECUTE THAT PIECE, RIGHT? THAT, THAT DUMP.
WELL WHEN YOU'VE GOT THAT MANY PEOPLE IN THERE, NOBODY KNOWS WHAT BELONGS TO WHO.
SO CAN THE CITY OF ADMIN SET ITS OWN PARAMETERS? LIKE CAN WE COME UP WITH OUR OR OWN ORDINANCE AS FAR AS ILLEGAL DUMPING AND RECYCLING OR NO.
CONSISTENT WITH WE WOULD DO THAT CONSISTENT WITH WHAT STATE LAW ALREADY PROVIDES YOU.
SO WE CAN'T HAVE LIKE A MORE STRICTER YEP.
SO IT'S GONNA CONTINUE TO BE A CHALLENGE.
IT'S JUST AN EXPENSE AND A CLEANUP WE'RE GONNA CONTINUE TO HAVE UNTIL WE EITHER RELOCATE IT OR MAN IT.
SO WHAT'S SO BUSIEST? WHAT'S THE BUSIEST DAY OUT THERE? YOU DO NOT WANT TO GO OUT THERE ON A FRIDAY NIGHT OR A SATURDAY MORNING.
CAN WE NOT HAVE SOMEONE OUT THERE CHECKING UTILITY BILLS ON FRIDAY AND SATURDAY? UM, WE HAVE TRIED TO BE OUT THERE FRIDAY AFTERNOON HAVING A CITY OF EDMOND EMPLOYEE OUT THERE ALL DAY ON SATURDAY.
UM, WE COULD DO THAT BUT THEN IF WE GET INTO A CONFRONTATION WITH SOMEBODY BECAUSE THEY DIDN'T BRING THEIR BILL OR THEY DIDN'T BRING THEIR ID OR ANYTHING LIKE THAT, WE'RE ACTUALLY ASKING TO CAUSE MORE OF A PROBLEM THAN WE'RE FIXING TO BE QUITE HONEST WITH YOU.
SO UNTIL, UNLESS IT GATED ACCESS WAS RESTRICTED TO GET INTO IT ANYWAY, IT WOULD BE HARD TO, IF A POLICE OFFICER'S OUT THERE AS WELL, WOULDN'T THAT CUT DOWN ON THE FUSSINESS? I THINK THAT WOULD MIGHT BE KIND OF EXPENSIVE THEN TOO.
IT'D BE DIFFICULT FOR THEM TO DEDICATE ONE OFFICER A DAY JUST TO BABYSIT.
RECYCLING RESPONSIBILITIES THE ULTIMATE, ARE YOU TRYING TO CLEAN IT UP SIR? WE'RE SPENDING A LOT OF MONEY TRYING TO CLEAN IT UP AND KEEP IT CLEAN.
CLEANING IT UP AND PICKING IT UP OR MONITORING IT.
WE CAN TELL YOU WE CAN GET THE ANALYSIS DONE FOR YOU.
JUST SEE I CAN DO A COST ANALYSIS ON IT.
THAT'S WHAT THE NUMBERS YOU CAN SHOW YOU.
YEAH, I THINK THAT WOULD BE GREAT CUZ I MEAN IF WE'RE HEADED TOWARDS A LOT OF PEOPLE COMING WITH THEIR GLASS AND WE KNOW THIS IS GONNA EXPONENTIALLY EXPLODE IN THE NEXT THREE TO SIX MONTHS OR WHENEVER, THEN WE NEED TO BE PREPARED WITH THAT, WITH SOME TYPE OF SYSTEM THAT CAN EITHER TAG THE VEHICLES OR LET THEM IN OR HAVE 'EM SCAN SOMETHING IN.
MOST, MOST CITIES HAVE MOVED THEIR RECYCLING CENTERS MORE CENTRALLY LOCATED TO THEIR POPULATION CENTERS.
THEY'VE GATED THEM, THEY'VE MANNED THEM AND THEIR CITY EMPLOYEES OUT ON THE ENTIRE TIME THEY'RE OPEN.
SO RIGHT NOW, WHAT DO YOU, WHAT DO YOU ESTIMATE YOU SPEND ON A YEARLY BASIS TO CLEAN MONITOR THIS SITE? ABOUT $80,000 AND CLEAN UP DISPOSAL COSTS.
HISTORICAL DATA ON THE PRESENT RATE.
SO RIGHT NOW WHAT WE HAVE IS HISTORICAL DATA FROM 2018 TO 2022 AT $4 PER HOUSEHOLD.
SO YOU CAN SEE HOW 2018 AND 2019 IT BUILT THE BALANCE.
IN 2020 THE CONTRACTUAL COST ROSE TO WHERE WE WERE LOSING MONEY AND IT WAS EATING INTO THE BALANCE THAT WE HAD HAD BUILT UP.
AND IN 21 AND 22 IT COME DOWN.
AND SO THE FIVE-YEAR CONTRACT WE SUBSIDIZED AT 30, SUBSIDIZED $36,510 TO MAINTAIN RECYCLING THROUGH THAT DATE.
WITH THE $4 STEADY RATE, WE DIDN'T ESCALATE IT EACH YEAR.
WE DIDN'T ESCALATE IT EVERY TWO YEARS.
WE STUCK IT AT $4, BUILT THE PA SLIDE BALANCE IN THE ACCOUNT AND THEN DEPLETED THAT BALANCE.
THE FINAL YEARS OF THE CONTRACT.
HERE'S ONE OF THE OPTIONS WE'RE LOOKING AT WITH THE PRESENT CONTRACTUAL COST BUILT IN, IT WOULD BE A FIXED RATE OF $5 AND 58 CENTS OVER THE FIVE YEAR
[00:40:01]
CONTRACT.A SMALL RESERVE WOULD BE BUILT THE FIRST THREE YEARS THAT WOULD BE UTILIZED TO PREVENT RATE INCREASES IN YEARS FOUR AND FIVE.
SO WE WOULD BUILD YEAR ONE, TWO, AND THREE YEAR FOUR AND FIVE WITH THE CONTRACTUAL INCREASES THAT ARE ALLOWED IN THE RECYCLING CONTRACT, IT WOULD LOSE MONEY.
AND A FIVE YEAR NET LOOKS JUST A LITTLE BIT OVER $4,000 ESTIMATED.
AND THAT'S WITH THE INCREASES THEY'RE GUARANTEED IN THAT CONTRACT YEAR TO YEAR.
RATE OPTION TWO, A GRADUATED INCREASE EVERY YEAR FOR THE FIVE YEAR LIFE OF THE CONTRACT RATES WOULD CHANGE EVERY YEAR ON JULY 1ST.
SO THAT RATE WOULD START OUT AT $4 AND 85 CENTS THE FIRST YEAR.
YEAR TWO WOULD BE FIVE 19 YEAR THREE WOULD BE 5 55 YEAR FOUR WOULD BE 5 92 AND YEAR FIVE WOULD BE $6 AND 34 CENTS PER HOUSE FOR RECYCLING PER MONTH.
AND OPTION THREE, THE RATE INCREASE WOULD OCCUR IN YEARS THREE AND FIVE.
SO WOULD STAY CONSISTENT THE FIRST TWO YEARS AT 4 85, THEN GO TO 5 87 FOR YEAR THREE AND FOUR AND THEN GO TO 6 39 FOR YEAR FIVE.
DOES THE VENDOR, OBVIOUSLY THEY'RE, THEY'RE WANTING TO MAKE SOME, THEY'RE NOT DOING THIS FOR FREE, THEY NEED TO MAKE A DOLLAR SOMEWHERE.
AS FAR AS ON THE RECYCLING SIDE, DO THEY, I GUESS WHAT I'M TRYING TO SAY, DO THEY WANT TO PICK UP AND SORT OUR, IS THERE A MARKET, DO THEY WANT TO PICK UP AND SORT OUR PLASTIC OR IS WHERE THEY'RE REALLY MAKING THEIR MONEY IS OFF OF AND HAVE ACTUAL RECYCLING OPPORTUNITIES? IS WITH THE GLASS AND WITH THE METAL.
METAL AND CARDBOARD ARE, THEY'RE TWO BIGGEST, TWO BIGGEST COMMODITIES.
SO PLASTICS, THERE'S SOME CAR, SOME COMMODITY VALUE TO IT.
UM, BUT MOST RECYCLING PROGRAMS, YOU'RE GONNA TAKE PLASTIC IF YOU RUN THE PROGRAM.
WHAT ABOUT GLASS? WHAT ARE THEY TELLING US ABOUT THAT? GLASS IS NOT VERY MUCH OF A VALUE.
THAT'S WHY THEY GOT IT OUT OF THE WASTE STREAM BECAUSE IT WAS A NEGATIVE COMMODITY FOR SO LONG.
THERE'S FINALLY A LITTLE POSITIVE TO IT AND THEY'RE TAKING IT BACK AGAIN.
BUT THAT'S BECAUSE THE RECYCLING CENTERS HAVE GOTTEN CLOSER AND THEY DON'T HAVE TO TRUCK IT OUT.
WELL, I MEAN I'D LOVE TO FOLLOW UP AS, AS YOU INVITED TO MEET WITH THEM JUST TO GET A BETTER UNDERSTANDING OF THAT.
JUST SO RESIDENTS KNOW WHAT THEY'RE PURCHASING.
SO THOSE ARE THE THREE RATE OPTIONS.
WHAT WE HAD DONE PREVIOUSLY, WE STICK THE, THE $4 FIXED RATE FOR THE FIVE YEARS, BUILT THE BALANCE AND FELL OFF AND IT KEPT THAT RATE CONSISTENT FOR THE FIVE YEARS OF THE CONTRACT.
UM, SO THAT'S WHAT WE PUT IS RATE OPTION ONE.
CAUSE THAT'S WHAT WE HAD PREVIOUSLY DONE AND WHAT WE HAD PREVIOUSLY WENT WITH, UH, THAT MAKES THE ACCOUNTING A LITTLE EASIER FOR THE CITY.
WE'RE NOT TRACKING THE INCREASES EVERY YEAR, YEAR TO YEAR.
WE'RE NOT CHANGING THE BILL RATES EVERY YEAR TO YEAR.
UH, WE APPROVE IT ONE TIME AND WE'VE GOT THAT RATE FOR THE, THE LIFE OF THE CONTRACT.
BUT THAT'S THE CHOICE THAT YOU GUYS WILL, WILL HAVE TO TELL US WHAT YOU WANNA DO.
UH, THOSE ARE THE THREE RATE OPTIONS.
NOW, NOW, NOW THAT WOULD BE ONE OF THE, I'LL CALL IT SIDE BENEFITS OR BENEFITS OF TAKING GLASS AND WITH RECYCLING.
THAT ACTUALLY MAY HELP US ON THE RESIDENTIAL DISPOSAL BECAUSE WE'RE NOT PUTTING GLASS IN THE, GET MY COLORS WRONG.
IS IT GREEN BARREL? GREEN? GREEN? IT'LL REDUCE SOME WEIGHT.
IT'S NOT A HUGE REDUCTION IN WEIGHT.
IF I'M PAYING $48 A TON MM-HMM.
WE'LL WE'LL HAVE TO SEE HOW MUCH SINCE WE'VE STARTED AND STOPPED AND STARTED AND STOPPED AND DUNNO WHAT THE PARTICIPATION WILL BE.
UH, BUT IT'LL BE INTERESTING TO WATCH AND MONITOR.
I'M SURE SOME HOUSEHOLDS MORE THAN OTHERS.
UM, NO CHARGE, NO CHANGE IN EQUIPMENT NECESSARY.
THEY'RE JUST GONNA CONTINUE TO USE THE, THE BLUE BINS THAT THEY HAVE.
UH, WE WOULD PREFER THE RATE INCREASE START AT THE DATE OF THE CONTRACT ON JULY ONE.
THAT WAY WE'RE NOT SUBSIDIZING ANYTHING LONGER THAN WE HAVE TO.
EDUCATION MATERIAL WILL BE SENT OUT TO THE RESIDENTS AND THE CITY WEBSITES WILL BE UPDATED TO REFLECT ALL THE CHANGES.
UH, THE FACT THAT WE'RE TAKING GLASS, WHAT WHAT WE CAN AND CAN'T PUT IN.
AND REPUBLIC HAS OFFERED TO LINK US UP WITH THEIR MARKETING SITE TO WORK ON SOME MESSAGES TO GET OUT TO THE PUBLIC VIA ELECTRONIC FORMAT.
AND SO WE'RE DEFINITELY GONNA TAKE 'EM UP ON THAT OFFER, UH, AFTER JULY ONE.
[00:45:01]
I'M VERY INTERESTED IN THE EDUCATIONAL PART BECAUSE SOME OF THE RESIDENTS I'VE TALKED TO, THEY THINK THAT WHAT THEY THINK IS ACTUALLY RECYCLABLE OR CLEANED ENOUGH TO BE RECYCLED IS NOT.AND HOPEFULLY IN OUR EDU IN THE REVAMP OF OUR EDUCATIONAL MATERIAL, THAT IT WILL SHOW, UH, WHAT A TYPICAL BIN MIGHT LOOK LIKE AND WHAT A BIN SHOULD LOOK LIKE.
GIVE THEM, GIVE THEM A VISUAL THAT, UM, BECAUSE JUST TELLING THEM SOMETIMES THAT MIGHT NOT HELP, BUT, BUT PERHAPS POSSIBLY GIVE THEM A VISUAL OF THAT.
UH, CUZ I, I'VE, I'VE SEEN SOME OF THOSE BINS AND I'M LIKE, THAT'S NOT GONNA MAKE IT ALL THE WAY THROUGH EXTREME YOU MEAN PVC PIPE AND ALL THAT GOOD STUFF IN IT? CORRECT.
OR HOUSEHOLD WIRING OR ELECTRICAL EXTENSION CORDS AND MM-HMM.
SO YEAH, IF THERE'S ENOUGH CONTAMINATION, THE WHOLE LOAD GOES OUT.
SO 2022 PROFIT LOSSES FOR, FOR SOLID WASTE.
SO THIS IS HOW WE ENDED UP THE YEAR IN 2022 RESIDENTIAL $462,000 COMMERCIAL, $716,000 RECYCLING, LOST 20,000 ROLL OFF, LOST 35,000 ADMIN LOST 453,000.
AND SO THAT PUTS OUR TOTAL GOING INTO THE RESERVES AT $670,000 FOR THE YEAR.
NOW IT'S IMPORTANT TO NOTE THAT A LOT OF THAT YEAR WE WERE NOT FULLY STAFFED, SO THOSE EXPENSES WERE A LITTLE BIT LOWER.
UH, WE DID NOT REPLACE TRUCKS AS WE NORMALLY WOULD.
UM, AND SO WE, WE HAD SOME INCREASED MAINTENANCE COSTS, BUT WE CERTAINLY DIDN'T HAVE THAT MANY, UH, INCREASES ON THOSE FRONTS.
AND SO WE ALSO DIDN'T HAVE TO, UH, DO SOME OF THE SUBSTITUTION AND RETROFITTING.
SO A COUPLE QUESTIONS ON THAT.
ONE WOULD BE, AS I'VE TALKED TO MULTIPLE INDUSTRIES IN AND OUTTA GOVERNMENT, TYPICALLY THEIR NUMBER ONE CONCERN IS STAFFING FOR, DOESN'T MATTER IF IT'S A RESTAURANT OR, OR TECHNICAL OR WHATEVER IT MAY BE.
Y'ALL NOTED IN THE PRESENTATION THAT YOU'D BE FLAT FOR STAFFING.
WHAT IS YOUR PROJECTION AS FAR AS ARE WE AT A COMPETITIVE WAGE OR DO WE HAVE ANY, UH, THREAT AS FAR AS, UH, RETIREMENTS THERE? WHAT'S SORT OF THE, UH, YOUR VISION, UH, AS A LEAD ON THAT? AS FAR AS WHAT WE NEED TO BE, UH, THINKING ABOUT IN TERMS OF FULLY STAFFING, WE'RE OKAY ON REPLACEMENTS FOR RETIREMENT.
OUR BIGGEST CHALLENGE IS ACTUALLY CDL LICENSING AND THE CHANGES THE STATE PUT IN EFFECT ON IT.
UM, SO USED TO GETTING THE COMMERCIAL DRIVER'S LICENSE WAS NOT NEAR AS BIG A DEAL AS IT IS NOW.
NOW THEY HAVE TO GO THROUGH THE FULL TRAINING PROGRAM, THEY HAVE TO GO THROUGH A FULL DRIVING SCHOOL.
IT'S A SIGNIFICANT FINANCIAL INVESTMENT.
AND SOMEBODY THAT DOESN'T HAVE A CDL TO BRING THEM ON BOARD BEFORE IT WAS NOT THAT BIG OF A DEAL.
THEY COULD TRAIN, THEY COULD TAKE THE TEST AND TAKE THE WRITTEN AND GET A PERMIT.
IT WAS SIMILAR TO KIND OF A, A NORMAL DRIVER'S LICENSE SET UP JUST WITH A COMMERCIAL ACCENT.
NOW IT'S FORMALIZED AND THEY HAVE TO GO THROUGH THE WHOLE TRAINING PROGRAM.
SO WE'VE GOT A REAL SIGNIFICANT TIME AND COST INVESTMENT INTO BRINGING SOMEBODY IN THAT DOESN'T HAVE A CDL.
SO WHEN WE'RE HIRING, WE'RE TRYING TO FIND PEOPLE WITH COMMERCIAL DRIVER'S LICENSES BECAUSE THE EXPENSE AND THE DELAY OF BRINGING THEM IN.
THE OTHER CHALLENGES, THEY'LL COME IN, CITY WILL PAY FOR TRAINING, THEY'LL GET TRAINING AND THEN THEY'LL LEAVE.
AND SO THAT'S ONE OF THE CHALLENGES AS FAR AS WAGES AND THAT KIND OF THING, LISA COULD SPEAK TO THAT BETTER THAN I COULD, BUT ALSO IN SOME INDUSTRIES, IF WE, IF THEY PAY FOR THE TRAINING, THEY HAVE A CLAUSE IN THEIR CONTRACT THAT THEY HAVE TO SERVE SO MANY A CERTAIN TIME PERIOD TO HELP PAY BACK THAT TRAINING.
DO WE, DO WE HAVE THAT IN OUR NO.
AND IT, AND IT CURRENTLY COSTS TWO TO $3,000.
BUT THEN WE HAVE TO PAY THEIR WAGES FOR THE FIVE WEEKS THAT THEY'RE IN THE TRAINING.
WHAT WE'RE DOING IS THIS PAST YEAR WE CONTRACTED WITH CONSULTANT TO DO A PAY AND STUDY, UH, PAY AND COMPENSATION STUDY.
AND WE WILL BE PRESENTING THAT STUDY TO COUNSEL ON MAY 22ND.
SO THE FOLLOW UP ON THAT, CAUSE I BELIEVE THAT'S THE, OH NO, GO AHEAD.
ANY, ANY QUESTIONS ON THAT? OKAY.
AND THERE'S OUR F Y 2024 BUDGET.
THESE ARE THE EXPENSES FOR EACH DEPARTMENT
[00:50:03]
AND OUR TOTAL BUDGET IS 11.6 MILLION AND NO INCREASE IN STAFFING LEVEL.WE HAVE TWO VACANT POSITIONS NOW THAT ARE PRESENTLY ACCOUNTED FOR.
THOSE ARE IN OUR PRESENT STAFFING LEVEL, UH, THAT WE'LL BE FILLING.
AND THEN THAT'LL PUT US BACK AT FULL STAFF.
SO LOOKING AT THIS, AND I REVIEWED THE PRESENTATION BEFOREHAND AS FAR AS MAKING A BUDGET PRESENTATION TO COUNCIL, ALL THIS, AS FAR AS ME VOTING IN JULY ON IT WOULD MEAN I'D NEED ALL THE INCOME, THE OUTFLOW.
UM, DO YOU ALL NOT HAVE A RESERVE FUND? BECAUSE I DIDN'T SEE IT NOTED.
IT IS, WE DO HAVE A RESERVE FUND RIGHT NOW.
I'M SORRY, THAT'S 1122 OF 2021 RIGHT NOW IT'S 11.1 MILLION.
THAT INCLUDES 7.3 MILLION IN LIABILITY FOR THE TRANSFER STATION CONTRACT BECAUSE THERE'S A CLAUSE IN THAT CONTRACT THAT COULD REQUIRE US TO BUY THE TRANSFER STATION.
SO WE ARE CARRYING THAT LIABILITY AND WE HAVE THE MONEY FOR THAT 1.7 MILLION IN ROUTE TRUCK EDITIONS.
AND THAT'S FOR THE NEXT FIVE YEARS TO LOOK AT WHAT WE'RE GOING TO ADD FOR ROUTE TRUCKS.
AND WITH THE COST OF ROUTE TRUCKS GOING UP, WE HAVE TO HAVE A RESERVE FOR THAT.
SO ONE OF THE BIG MISCON MIS UH, CHARACTERIZATIONS I GUESS IS WE DO HAVE A FLEET FUND.
SOLID WASTE IS PART OF THE FLEET FUND, BUT THE FLEET FUND HANDLES REPLACEMENTS OF VEHICLES ONLY.
IT DOESN'T HANDLE ADDITIONAL VEHICLES.
IT HAS NEVER HANDLED ADDITIONAL VEHICLES.
IF YOU ADD VEHICLES THAT COMES OUT OF YOUR OPERATION BUDGET AND THEN YOU FUND THE LEASE RATES GOING FORWARD FOR THE REPLACEMENT OF THAT VEHICLE.
SO EVERY SOLID WASTE TRUCK WE'RE GOING TO ADD, WE HAVE TO COME OUT OF RESERVE FOR CASH AND THEN THAT INCREASES OUR BUDGET THE NEXT YEAR IN OUR LEASE RATES WHERE WE WOULD PAY INTO THE LEASE FUND TO REPLACE THAT VEHICLE.
SO AS FAR AS THE 7.3 MILLION CASH ON HAND, SINCE YOU'RE, THIS IS A BUSINESS THAT IS REVENUE AS FAR AS IF THAT WERE TO DO THAT, YOU COULD GO TO THE, WE COULD GO TO THE BOND MARKET AND SAY WE HAVE THIS REVENUE THAT'S COMING IN MONTHLY AND WE COULD PAY FOR THAT AT SOME FINANCE RATE INSTEAD OF HOLDING THAT 7.3 MILLION.
THOSE ARE DECISIONS ABOVE ME, SIR.
IS THAT POSSIBLE? DO YOU SURE.
I MEAN, IT, IT'S OFTENTIMES MAYBE MANY CITIES USE, UH, PROPERTY TAX OR GEO OR IN OKLAHOMA IT'S PROBABLY MORE SALES TAX TO GO BOND FOR CERTAIN CAPITAL PURCHASES, IF THAT'S WHAT YOU'RE ASKING THAT.
WELL, I GUESS, I MEAN IT'S JUST A LOT OF CAPITAL TO TIE UP FOR A POTENTIAL, UH, THING THAT WE WOULD HAVE TO DO.
UM, SO MY QUESTION WOULD BE WHETHER OR NOT WE WANNA FREE UP THAT CAPITAL FOR ANOTHER PROJECT, UNDERSTANDING THAT SINCE WE HAVE, UH, MONTHLY RECURRING REVENUE THAT THAT'S EASILY, THAT'S EASILY SOMETHING THAT WE CAN GO TO THE MARKET TO AND FIND FINANCING TOO.
IF WE HAD TO BUY OUT A PARTNER, DO SOMETHING, WE HAVE DIPPED INTO THAT RESERVE A COUPLE OF TIMES FOR GENERAL FUND TO THE TUNE $2.3 MILLION THIS LAST YEAR.
AND, UH, WE'VE GONE INTO IT A COUPLE OF TIMES FOR STORM EVENTS.
FOR STORM WHAT? STORM? EVENTS.
IT'S FOR THE IMMEDIATE CASH FLOW UNTIL WE GOT PAID BACK.
IT HAS BEEN USED FOR THAT SUPPORT TRUCK EDITION'S $135,000 AND 1.9 FOR EMERGENCIES IN SHORTFALLS TO ACTUALLY RUN THE DEPARTMENT SHOULD WE HAVE A MAJOR EMERGENCY, WHICH IS ROUGHLY 90 DAYS OPERATING CAPITAL.
SO THE MOST, AND I'M SURE YOUR INBOX OVERFILLS, NO PUN INTENDED, UH, WITH, UH, THIS REQUEST IS THAT THE MOST REPEATED REQUESTS THAT I GET, UH, OUTSIDE OF JUST LACK OF UNDERSTANDING ON RECYCLING WITH WASTE, HAS TO DO WITH WE WANT BULK PICKUP.
AND SO MY QUESTION WOULD BE IS OBVIOUSLY THAT'S SOMETHING THAT YOU'VE STUDIED MM-HMM.
WHAT HAS THE COST ANALYSIS BEEN DONE THAT IF WE PROVIDED A FALL AND SPRING BULK PICKUP, WHAT WOULD BE THE COST ON THAT WOULD DEPEND ON THE TONNAGE.
I'LL ALSO TELL YOU THAT EVERY SINGLE CITY THAT HAS IT REGRETS IT.
OH, I, YEAH, I FULLY AGREE THAT THE CITY THAT RE REGRETS IT.
MY QUESTION IS HOW MUCH DOES IT COST? DEPENDS ON THE TONNAGE.
IT DEPENDS ENTIRELY UPON THE TONNAGE.
AND SINCE WE PAY WHAT WE PAY FOR TONNAGE, UH, THE COST WILL BE GREATER THAN IT WOULD BE FOR IF WE DIRECT TRANSPORT.
THE SECOND PIECE TO THAT IS WHAT ARE YOU PICKING UP? HOW LONG IS IT GONNA BE OUT? WHAT ARE THE DEED RESTRICTIONS? WHAT ARE THE HOAS SAY ABOUT IT? BECAUSE IN OKLAHOMA CITY, YOUR WASTE CAN BE OUT FOR 72 HOURS BEFORE IT'S PICKED UP.
SO IF IT'S YOUR SCHEDULED BULK DAY, THEY'VE GOT A 72 HOUR WINDOW TO COME PICK THAT UP.
WE HAVE PEOPLE THAT ARE ANGRY IF THEIR CARTS ARE LEFT OUT OVERNIGHT, MUCH LESS A PILE OF TRASH IN FRONT OF THEIR HOUSE.
THE OTHER PART IS YOU HAVE PEOPLE COMING IN SCAVENGING THROUGH THAT.
YOU HAVE PEOPLE BRINGING STUFF IN TO LEGALLY DUMP
[00:55:01]
JUST BECAUSE THERE'S A PILE THERE.AND THEN YOU'RE DEALING WITH APPLIANCES AND YOU'RE DEALING WITH REFRIGERATORS AND REFRIGERANT RECOVERY AND ALL OF THOSE FACTORS THAT IT'S IMPOSSIBLE TO PUT A COST ON UNTIL YOU DO IT.
SO AS WE DO IT RIGHT NOW, IT'S PAY AS YOU GO, WE'LL COME BY, WE'LL PICK IT UP.
BUT YOU ARE RESPONSIBLE FOR DISPOSING OF YOUR WASTE AND THE COST.
THAT COST IS NOT BURDENED ON EVERYBODY WITH A RATE INCREASE.
SO IN OKLAHOMA CITY, IF I CAN FAULT COUNTS, IS IT BOTH PICK UP, I'LL CALL IT BAKED INTO THEIR RESIDENTIAL RATE OR MM-HMM.
WHAT YOU'LL FIND OUT IN MOST CITIES TOO, SO IS RECYCLING.
THEY PAY A SOLID WASTE RATE AND THEY HAVE NO IDEA WHAT THE BREAKDOWN IS.
AND THAT'S ALL IT'LL SAY ON THE WEBSITES.
THAT TRASH RATE, THEY HAVE NO IDEA HOW IT BREAKS DOWN.
I THINK BULL RATE NEEDS TO STAY INDIVIDUAL.
IT, IT PUTS THE RESPONSIBILITY WHERE IT SHOULD BE.
HOW MUCH IS THAT? HOW MUCH DOES THAT COST? IS IT JUST THE CITIZEN GETS BILLED BY THE TONNAGE OR IS IT JUST A SET FEE? CUBIC YARD? ITS $10 FOR THE FIRST, FOR US TO VISIT IN THE FIRST CUBIC YARD, AND THEN IT'S $4 A CUBIC YARD AFTER THAT.
IT'S REALLY CHEAP FOR WHAT WE DO.
IT'S A LOT CHEAPER THAN A PRIVATE PICKUP SERVICE, I ASSURE YOU THAT.
AND WE ALSO HAVE THE BLUE BAG PROGRAM WHERE IF IT'S JUST LAWN WASTE, THEN YOU CAN BAG THE BUY THE BAGS AND CALL US AND WE'LL COME PICK THE BAGS UP.
AND THE DISPOSAL COST IS BUILT INTO THE COST OF THE BAG.
AND ONE OF THE THINGS PEOPLE DON'T UNDERSTAND ABOUT HEAVY TRASH DAY IN OKLAHOMA CITY, FOR EXAMPLE, IS IF YOU PUT BAGS OUT, THEY WON'T PICK 'EM UP.
THEY WILL NOT PICK UP BAG TRASH ON HEAVY TRASH DAY.
SO IF YOU BAG ALL YOUR LAWN CLIPPINGS AND PUT 'EM UP, THEY'RE GONNA BE THERE, THEY'LL PICK EVERYTHING ELSE UP.
THEY WANT YOU TO CYCLE THOSE THROUGH YOUR REGULAR TRASH BAG.
AS FAR AS FAR AS THOSE BLUE BAGS, THEY USED TO BE AVAILABLE AT LIKE TRUE VALLEY OR AT THE ACE HARDWARE OR WHATEVER, WHERE THEY, WHERE DO THE RESIDENTS GET THOSE? IF THEY'RE ASKING A HARDWARE, STILL SELLS 'EM IN A COUPLE OTHER LOCATIONS, I CAN GET YOU THOSE LOCATIONS.
DO THEY GET 'EM FROM YOU ALL AT ALL? CAN THEY STOP BY ANYWHERE? PICK 'EM UP THROUGH THE CITY OF EDMOND? SOME LOCATION? NO.
ANY OTHER QUESTIONS? SO I GUESS, UM, WITH OUR RECYCLING COSTS, THAT'S SOMETHING THAT WE AS COUNCIL, I GUESS, ARE GONNA BE VOTING ON PRIOR TO VOTING ON THE BUDGET OR YEAH, THERE'S A COUPLE SOME DISCUSSIONS OR WHAT.
I MEAN, IF THE COUNCIL FELT SO MOVED, YOU COULD DIRECTION TO GO TO OPTION TWO AND WE'D BUILT IT INTO THE BUDGET.
AND WHEN THE BUDGET COMES FORWARD AS PART OF THE OVERALL, UH, BUDGET, MOTION TO APPROVE THE BUDGET, UM, IF YOU GUYS WANNA CONTINUE TO DISCUSS IT AND WE COME BACK ON THE MAY 22ND OR THE FOLLOWING BUDGET HEARINGS AND YOU SAY, HEY, WE'RE GONNA WANNA GO TO ONE OR TWO, OR, I MEAN, DO Y'ALL, WE HAVE AN OPTION FOUR.
WE CAN LOOK AT THOSE TYPE OF THINGS.
WE JUST NEED TO, YOU KNOW, TO LOOK IT AT, I MEAN, IF, IF THE QUESTION COMES UP, HEY, DO YOU WANT TO USE TIP INTO, I'LL CALL IT RESERVES TO, TO OFFSET SOME OF THAT COST, WE COULD DO THAT.
UM, TODAY WE JUST WANT TO PRESENT SOME OPTIONS.
UH, I KNOW SOME PEOPLE HAD QUESTIONED WHILE TO DO THE OPTION, WANTED TO GO ALL THE WAY TO FIVE, WHAT WAS IT, 55, 58? MM-HMM.
I PERSONALLY WOULD LOVE TO HAVE A BRIEFING THAT I COULD ATTEND OR OTHERS COULD ATTEND THAT THEY WANT, UH, WITH OUR VENDOR JUST TO ASK THOSE QUESTIONS AS FAR AS SURE.
WHAT'S ECONOMICAL, AND BE ABLE TO INVITE A FEW CITIZENS OF THOSE WHO I KNOW ARE VERY PASSIONATE ABOUT RECYCLING AND DON'T WANT TO HAVE, UH, UNINTENDED CONSEQUENCES.
UH, SO THAT WE KNOW THAT WE'RE JUST SPENDING THE MONEY IN THE RIGHT PLACE AND WE KNOW WHAT THE TAILPIPE IS.
SO WE HAVE THAT GOOD FEELING WHEN WE DROP IT IN THE BLUE BIN.
AND WE JUST KIND OF KNOW WHAT, WHAT HAPPENS TO THAT.
I CAN GET THEIR NATIONAL ATTITUDE ONLY HOW MUCH THEY PUT WHICH MARKET.
ONE MORE THING IS, IF FOR SOME REASON COUNCIL CITED TO NOT MAKE A DECI DECISION NOW, OR EVEN DURING THE BUDGET HEARING PROCESS, OR WHEN WE APPROVE THE BUDGET, UM, WHAT WOULD HAPPEN IS OUR RECYCLING RATE WOULD GO INTO EFFECT.
OUR CONTRACT WOULD GO IN EFFECT JULY 1ST.
AND UNTIL SUCH TIME, EITHER COUNCIL DECIDED TO TAKE ACTION TO ADJUST THE RATE OR NOT, WE WOULD SIMPLY BE SUBSIDIZING THAT OUTTA RESERVES OTHER MEETINGS.
WE JUST THINK IT'S A GOOD TIMING TO BUILD IT INTO THE OVERALL BUDGET VERSUS, YEAH.
I DON'T WANNA SUBSIDIZE IT ANY MORE THAN WE ARE, SO I THINK WE NEED TO ADDRESS IT KNOWING THAT OUR COST IS INCREASING, BUT YEP.
SO WE HAVE A LITTLE BIT OF TIME BEFORE THE BUDGET HEARING, SO WE'RE GONNA ASK THOSE QUESTIONS AT THOSE MEETINGS AND, UM, RUN BUDGET TIME, MAKE THAT DECISION.
[01:00:01]
YOU.[3. Presentation and discussion of recommendations from the Development Impact Review Committee (DIRC) on the proposed fee changes for the Engineering and Building and Fire Code Services Departments for FY2024. ]
ARE YOU DOING THE NEXT ONE? YES, SIR.THE PRESENTATION AND DISCUSSION OR RECOMMENDATIONS FROM THE DEVELOPMENT IMPACT REVIEW COMMITTEE, DIRK, ARE THE PROPOSED FEE CHANGES FOR THE ENGINEERING AND BUILDING FIRE CODE SERVICES DEPARTMENT FOR FISCAL YEAR 24.
SO JIM SMITH, ASSISTANT CITY MANAGER FOR OPERATIONS, AND THIS IS JUST A BRIEF OVERVIEW.
UM, I GUESS I CAN OPERATE THIS RIGHT BUTTON.
SO, UH, TO GIVE YOU SOME BACKGROUND ON THIS, UH, THE PROPOSED FEE SCHEDULES WERE PRESENTED, UH, MARCH 27TH, THE CITY COUNCIL BUDGET WORKSHOP FOR THE DEPARTMENTS OF PLANNING ENGINEERING, PUBLIC WORKS AND BUILDING SERVICES.
ON APRIL 19TH, WE BROUGHT THE, UH, FEE SCHEDULES TO DEVELOPMENT IMPACT VIEW COMMITTEE DI AND, UH, THEY WERE ALL RECOMMENDED FOR APPROVAL BY THE DIRT.
UH, SO AGAIN, THIS, UH, THIS REVIEW IS GONNA PROVIDE, UM, JUST AN UPDATE AND ALSO GIVE YOU AN ESTIMATE IN THE INCREASE IN REVENUES THAT EACH WOULD, UH, GENERATE AN, AND THOSE INCREASE IN REVENUES ARE INTENDED TO RECOVER ACTUAL COST OF PROVIDING THE SERVICE AND, UH, ASSISTING FUNDING IMPROVEMENTS TO CUSTOMER SERVICE.
SO FIRST, THE PLANNING DEPARTMENT, UM, YOU CAN SEE THE CURRENT FEE THAT WE'RE CHARGING AND THE PROPOSED FEE INCREASED FOR EACH OF THOSE.
AND TO COME UP WITH THESE FEES, THEY TOOK A LOOK AT THEIR ACTUAL COST AS WELL AS COMPARISON CITIES.
AND, UH, IN SOME CASES, I MEAN, WE'RE COMPETITIVE WITH COMPARISON CITIES, BUT IN SOME CASES WE'RE ACTUALLY, UH, STILL LOWER THAN, UH, OKLAHOMA CITY.
AND THE FEES THEY CHARGE EVEN WITH THE INCREASE.
UM, ENGINEERING INSPECTION FEES, UH, THIS IS FOR INSPECTION OF CONSTRUCTION PROJECTS.
YOU CAN SEE EDMOND'S CURRENT FEE AND THE PROPOSED FEE, AND THAT'S COMPARED TO OKLAHOMA CITY.
CURRENT FEES, IT'S BASED ON A PERCENTAGE OF THE ACTUAL CONSTRUCTION COSTS OF THE PROJECT.
UH, AND YOU CAN SEE IT'S A SLIDING SCALE.
THE MORE EXPENSIVE THE PROJECT IS, THE LOWER THE PERCENTAGE AND BELOW IS PROVIDED.
UH, JUST EXAMPLES OF A TYPICAL FEE FOR DIFFERENT CONTRACTS, AMOUNT, CONTRACT AMOUNTS.
SO, UM, AGAIN, THE INTENT IS TO MORE CLOSELY COVER, UH, ACTUAL COSTS IN PROVIDING THE SERVICE.
AND, UM, WE LOOKED AT COMPARISON CITIES AND, AND WE'RE DEFINITELY COMPETITIVE WITH COMPARISON CITIES.
UM, I, I JUST WANT TO, WE TALK ABOUT COMPETITIVE, I I WANT TO SAY COMPARABLE VERSUS COMPETITIVE.
I JUST WANNA MAKE SURE THAT'S A DISTINCTION BETWEEN THE WORDS OF COMPETITIVE VERSUS COMPARABLE.
UM, BUT KNOWING, KNOW, SOME CITIES MAY BE JUST INHERENTLY BECAUSE WHAT THEY DO, OR BIGGEST SERVICE AREA, EXAMPLE, OKLAHOMA CITY, THEY COVER, WHAT, 645 SQUARE MILES WE DO AT 90.
THEY HAVE DIFFERENT COSTS THAT GO INTO THAT.
SO IT'S NOT JUST A COMPETITIVE, IT'S COMPARABLE, UM, IN THE TYPE OF CONSTRUCTION THAT WE DO MAY BE DIFFERENT THAN OTHER COMMUNITIES.
SO I JUST, I WANT TO MAKE SURE THE WORD IS NOT, WE'RE OUT HERE TO BE COMPETITIVE, TO BE NUMBER ONE AND DO, WHETHER IT'S THE LEAST OR THE MOST, IT'S WHAT IS THE TRUE COST OF PROVIDING THAT SERVICE AND WHAT DO WE DO TO PROVIDE IN A, A CUSTOMER SERVICE FRIENDLY AS EFFICIENTLY AS, AS ECONOMICALLY AS POSSIBLE? SO, YEAH, THAT'S EXACTLY CORRECT.
PUBLIC WORKS IS A GREAT EXAMPLE OF THAT, OF, UH, CAPTURING OUR ACTUAL COST, WHICH, UH, WE HAVEN'T BEEN DOING.
YOU CAN SEE THE FIRST, UM, ROSE IS FOR A FIVE EIGHT INCH METER.
OUR CURRENT FEE THAT WE'RE CHARGING NOW, LET ME, LET ME PAUSE THERE AND EXPLAIN.
ONE WHERE WE JUST SELL THE WATER METER TO THE CONTRACTOR.
IF YOU HIRE YOUR OWN CONTRACTOR AND THEY DO THE LABOR, WE SELL THE WATER METER.
WE'RE CURRENTLY CHARGING $213 FOR THAT FIVE EIGHT METER.
YOU SEE THE ACTUAL COST OF THE METER IS 4 25.
WE'RE PROPOSING FOUR 50 BECAUSE OF INFLATION.
AND THOSE NUMBERS ARE JUST CONTINUALLY CHANGING.
UH, NOW THE OTHER OPTION IS IF THE CITY INSTALLS IT.
SO WE USE OUR MANPOWER AND LABOR TO INSTALL THE SERVICE LINE AS WELL AS SELL THE METER.
WE'RE CURRENTLY ONLY CHARGING 5 42, WHICH DOES DEFINITELY DOES NOT CAPTURE ACTUAL COST.
[01:05:01]
WHAT'S A 1001 $11 AND BOTH FEE IS 1200.SO THE FOLLOWING ROW BELOW THAT IS JUST, IT'S JUST REPRESENTATIVE OF DIFFERENT SIZE METERS, THE ONE INCH, ONE AND A HALF AND TWO INCH METER, UH, BUILDING SERVICES.
LIKEWISE, UM, YOU CAN SEE THE CHART TO THE RIGHT, SORRY FOR THE SMALL PRINT, BUT I BELIEVE Y'ALL HAVE COPIES OF THIS.
UM, WENT UP A LITTLE BIT ON EACH OF THE DIFFERENT, UH, LINE ITEMS ON FEES TO GET THEM UP TO ACTUAL COST.
UH, THIS IS AN EXAMPLE OF A 3000 SQUARE FOOT, UH, RESIDENTIAL HOME.
IF YOU ADD ALL THE FEES UP, BOTTOM LINE, THE CURRENT COST IS 7 94 AND THAT'S EXCLUDING THE IMPACT OR CAPACITY FEES FOR WARRANT SEWER.
SO THE PROPOSED COST IS, UH, 1001 13, WHICH RESULTS IN INCREASE INCREMENTALLY OF $319 FOR ALL THOSE PERMITS.
AND THEN LIKEWISE, HAVE AN EXAMPLE FOR COMMERCIAL BUILDINGS.
UH, THAT'S A 10,000 SQUARE FOOT EXAMPLE, CURRENT COST, UH, 3,222, PROPOSED COST 4,773 FOR THE TOTAL OF ALL THE FEES, EXCLUDING IMPACT FEES.
AND THEN THAT RESULTS AN INCREASE OF 1005 50 FOR ALL THE FEES.
SO WHEN WE PUT ALL THAT TOGETHER, UH, THE ESTIMATED ADDITIONAL REVENUE FOR THE PLANNING DEPARTMENT WOULD BE $44,000.
TYPICAL OVER A YEAR, UH, ENGINEERING 131,000 PUBLIC WORKS, 361,000 BUILDING SERVICE IS 300,000.
SO A TOTAL INCREASE ACROSS ALL OF THOSE DEPARTMENTS, $836,000.
AND ONCE AGAIN, THE INTENT IS TO CAPSULE ACTUAL COSTS OF THE SERVICE THAT WE'RE PROVIDING, AS WELL AS TO HELP FUND, UH, IMPROVEMENTS TO OUR LEVEL OF SERVICE FOR OUR CUSTOMERS.
SO THAT'S THE REVIEW AND NEXT STEPS.
UM, GOING FORWARD, ALL DEPARTMENTS HAVE BEEN DIRECTED TO REVIEW FEES ANNUALLY, WHICH IS SOMETHING THAT HASN'T HAPPENED.
UH, AND TO SUBMIT FEE ADJUSTMENTS EVERY TWO YEARS IF NEEDED.
SO WE'RE GONNA DO THIS ON A MORE REGULAR BASIS.
SO, SO JIM, THAT'S AN IMPORTANT POINT.
CAN, CAN YOU REMIND EVERYBODY WHEN'S THE LAST TIME WE UPDATED THESE VARIOUS FEES? I THINK SOME OF US BEFORE AND ALIVE WHEN WE DID IT, BUT
I THINK, UH, I THINK OUR NUMBER ONE RECORD IS 15 YEARS.
WE HAVE SOME THAT HAVEN'T BEEN UPDATED FOR 10 YEARS OR EIGHT YEARS OR FOUR YEARS.
I THOUGHT, RANDY, YOU WERE LIKE 1992 OR SOMETHING LIKE THAT, OR SOME OF THE, SOME OF OUR FEES.
YOU MIGHT WANNA SHARE WHAT THE DIRT COMMITTEE SAID TO US ABOUT THAT.
WE WERE, UM, GIVEN NOTICE, UH, MORE THAN ONCE THAT, UM, THAT NEEDS TO BE DONE MORE OFTEN.
THEY APPROVED ALL THE FEES AND THEY AGREED WE WERE WAY BEHIND.
BUT RATHER THAN DO ONE LARGE FEE INCREASE EVERY 15 YEARS MM-HMM.
BUT WE NEED TO LOOK AT THAT EVERY YEAR TO WHERE IT'S NOT A BIG BUMP, IT'S JUST SMALL INCREMENTAL INCREASES.
JIM'S VERY NICE, BUT WE'RE KIND OF CHASTISING US SAYING, IF WE RAN OUR BUSINESS LIKE THIS, WE WOULDN'T BE IN BUSINESS.
YOU SHOULDN'T BE WAITING THIS LONG BUILDERS KNOW WHAT IT IS.
WE SIMPLY PASS THESE FEES ON TO THE, TO THE HOMEOWNER OR THE BUSINESS OWNER.
SO IT'S KIND OF A GOOD WAKE UP FOR US.
AND THE OTHER PART OF THIS IS THESE FEES ARE WE WANT TO MOVE THESE DEPARTMENTS TO BECOME MORE ENTERPRISE BASE.
IF YOU THINK OF LIKE KINGBIRD AND OTHERS WHERE OR SOLID WASTE IS THEY SELF-FUND THEMSELVES AND WE REDUCE THE NUMBER OF SUBSID SUBSIDIZE THEM FROM THE GENERAL FUND.
FOR EXAMPLE, IF I'M GONNA GO BIG A HILL HOME, I WANT TO HAVE THE RIGHT AMOUNT OF INSPECTORS, PLAN REVIEWERS TO GET THAT THROUGH THE PROCESS QUICKLY.
I'M, I'M GONNA BE MORE GENERALLY MORE SUPPORTIVE OF A, OF A FEE CHANGE OR INCREASE IF I KNOW THERE'S GONNA BE ADJUSTMENTS TO MAKE SURE I GET THROUGH THE PROCESS QUICKER, MORE EFFICIENTLY.
SO, YOU KNOW, WHEN WE SAY ADDITIONAL REVENUE, IT'S REALLY JUST TO PILE IT BACK INTO THOSE DEPARTMENTS TO EITHER UPDATE SOFTWARE, HIRE MORE STAFF AS THE NEED OCCURS.
UM, SHALL I PROPOSE FEE SCHEDULE UPDATES? THE PLAN IS TO ADOPT THEM EACH YEAR WITH THE ANNUAL BUDGET.
UH, HOWEVER, UH, THESE FEES DO REQUIRE AMENDMENTS TO THE RESPECTIVE ORDINANCES.
[01:10:01]
AT A SOON AND UPCOMING CITY COUNCIL MEETING.WE'LL BRING THE ORDINANCES FORWARD TO ADOPT AND THEN OF COURSE HE'LL JUST GO IN WITH THE ADOPTION OF THE NEW BUDGET.
ANY QUESTIONS? QUESTIONS? THANK YOU SIR.
THANK VERY INFORMATIVE WORKSHOP AGAIN.
TODAY, UH, A LOT FOR US TO THINK ABOUT, A LOT MORE QUESTIONS, TO HAVE A LOT OF ADDITIONAL CONVERSATIONS HAVING YOU SAID THAT THIS WORKSHOP, YOU WRITE AUR.