19-3101 Accepting Commercial Solid Waste Consolidation Study

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Exhibit A TECHNICAL MEMORANDUM To: Chuck Smith, City of Casselberry Parks & Facilities Supervisor From: MSW Consultants Date: May 9, 2019 Subject: Commercial Solid Waste Consolidation Study Findings Executive Summary r Ili ii r� The City of Casselberry currently has ten franchised commercial solid waste haulers to service the 1,100 businesses in the City. For each hauler, the City should optimally reconcile monthly franchise payments with actual service levels at businesses within the community. The reconciliation process is time consuming and requires significant staff time to monitor service levels and reconcile monthly reports that accompany franchise fee payments. As a practical matter, the City does not have dedicated staff available to consistently perform this level of oversight. Many cities and counties in Florida have opted to implement an exclusive franchise system for commercial refuse collection. Under an exclusive system, haulers compete to be selected as the single private hauler to be awarded the right to provide services to all commercial businesses within the City. The exclusive franchisee is subject to performance requirements and has service rates established through the competitive procurement process. It is critical to note that an exclusive provider will be able to route its collection vehicle(s) in a highly efficient manner, which not only reduces the truck traffic and the inherent side effects, but also reduces the unit cost to serve individual businesses. If a city has competitively procured an exclusive franchise hauler, all else equal, the rates to customers should be consistently lower than the rates paid in a non-exclusive system. The City retained MSW Consultants, a nationally recognized management consulting company specializing in the municipal waste management industry, to review and evaluate the existing non- exclusive commercial collection system and advise the City on the feasibility of consolidating commercial collection. Key findings of this analysis include: ® Current Non -Exclusive Commercial Collection System Summary - All ten franchise haulers provide roll -off collection service, and six of the haulers provide frontload container service. All haulers pay the City a franchise fee of 20 percent of gross revenues. Although the non-exclusive collection system allows businesses to "hire and fire" their hauler, it is inherently inefficient because no single hauler can operate the most efficient routes. On an