Title
Road Maintenance Costs Associated With Providing Residential Solid Waste Collection Services (B)
Explanation
On August 18, 2011, the City Commission accepted the City Auditor's report related to a Review of Solid Waste Collection Fees and authorized the Audit, Finance and Legislative Committee to retain Issue #3 from the report, regarding Road Maintenance Costs, in committee for further discussion.
A copy of the audit report, which includes a response from the City Manager, is submitted as backup for this item. Issue #3 appears on page 8 of the report and includes a recommendation for management to evaluate the methodology established in 1993 to calculate road maintenance costs associated with providing residential solid waste collection services and determine if annual allocations should be changed to reflect current cost factors and inventory of residential streets. Attachment A at the end of the report includes a July 14, 2011 memo to the Mayor discussing the relevant history and provides an updated analysis regarding these costs.
On November 14, 2011, the Audit, Finance and Legislative Committee (AFLC) discussed this issue and requested staff to return with further information related to this program.
On November 26, 2012, the AFLC agreed to recommend that the City phase in over a three year period the total cost of roadway pavement management for the Solid Waste Program, beginning with Fiscal Year 2014. The Committee also recommended that management implement a process of periodically adjusting the solid waste rates after the 3 year transition to keep up with identified costs. The item was retained in Committee so that staff could provide additional information on the 3 year phase in for cost increases by can size.
On July 11, 2013, the AFLC discussed this issue and agreed with the previous conclusions of the AFLC from November, 2012. The three year transition will be funded through planned biennial rate increases proposed in the budget and through anticipated savings from extending the City's WCA contract.
Recommendation
The City Commission approve the phasing in over a three year period accounting for the total cost of roadway pavement management for the Solid Waste Program beginning with Fiscal Year 2014.