19-3101 Accepting Commercial Solid Waste Consolidation Study

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City of Casselberry May 9, 2019 Page 3 of 12 20 percent franchise fee, the consolidation of commercial container service would consequently reduce the City's franchise fee revenue, all else remaining equal. For example, if the commercial rates in an exclusive system were to drop 10 percent, there would be a commensurate reduction in franchise fee revenue. However, it is worth noting that, with fewer trucks on the road, the consolidated collection system would be expected to: reduce wear and tear on City streets; reduce truck emissions; and reduce the time commitment of City staff to adequately administer and monitor the system. Such reduced impacts would presumably justify a slight reduction in franchise revenues. MSW Consultants has reviewed the details of the above analysis in collaboration with City staff. Based on the ability of exclusive commercial collection to reduce (i) the solid waste cost to City businesses in the aggregate, (ii) wear and tear on City streets, (iii) air emissions from heavy duty collection trucks, and (iv) the administrative burden placed on City staff under the current system. MSW Consultants supports a recommendation to move forward with the consolidation of commercial collection system in Casselberry. The remainder of this memorandum provides additional details on the independent analysis and data that contributed to these findings. The City of Casselberry (City) is located 20 minutes northeast of downtown Orlando at the crossroads where U.S. Highway 17-92 and State Road 436 intersect. Both of these roads are known for the substantial retail and multi -family development. The City is committed to redevelopment activities along U.S. Highway 17-92, including a mix of retail, government, residential and recreational activities. Casselberry's government is focused on meeting the needs of businesses looking to relocate and/or entrepreneurs who are seeking the right location to jump- start a new enterprise. One of the fastest growing areas in Metro Orlando, Casselberry is an exciting, thriving community in which to do business. The City operates a non-exclusive franchise system for commercial solid waste haulers to serve its roughly 1,100 businesses. Under this non-exclusive system, multiple private hauling companies can apply to be a franchisee, after which they are authorized to provide commercial dumpster and roll -off collection services within the City. As a condition of holding a franchise, haulers are required to pay the City a 20% fee on gross revenues. In 2018, the City was paid $361,428 in franchise fee revenues. An oft -cited, although misunderstood, benefit of a non-exclusive system is that customers can choose to hire and fire their service provider based on the customer's preferred combination of service level and price. There is, consequently, "competition" in the market for commercial refuse collection. However, operational efficiencies in non-exclusive collection systems are poor, because multiple haulers must traverse the same streets to serve businesses that may be adjacent to one another. The resulting truck traffic increases air emissions, heightens wear and tear on public and private roadways, and may result in three or more heavy-duty collection trucks collecting trash from the same shopping center at different times on the same day.