In review of community enhancement trends and initiatives, an area of potential improvement identified by staff is in the waste services area of residential bulk waste collection.  Staff observations include:

• The allowed quantity of five (5) items is in many cases insufficient;
• Calling in to schedule the monthly collection may be forgotten, thus leaving the City with bulk wastes that may sit out at the collection location until another month goes by;
• There are a significant number of City Staff compliance efforts related to bulk waste services.

The solid waste fund is an enterprise fund that must raise its operating budget from charges to customers.  The fund is not tax supported.  The fund regularly has a positive cash reserve.  The fund last increased residential waste services rates to customers in June of 2010.  The fund provides the lowest cost of residential waste service among the five (5) cities that make up the North Texas Municipal Water District (NTMWD) Solid Waste System.  A table comparing NTMWD solid waste system member city residential charges is provided below.

In the Fiscal Year (FY) 22 Solid Waste Enterprise Fund budget, staff included a $300,000 budget contingency to provide resources to potentially improve residential monthly bulk collection services.  If improvements staff developed were not approved by the Allen City Council, these funds would simply revert to the Solid Waste Fund Reserve. Staff efforts were focused on:

• Ceasing the requirement that residents call-in for the monthly collections to be scheduled;
• Increasing the volume of material that will be removed under the bulk waste program.

Staff worked with CWD on alternatives and their associated costs.  City Staff selected an alternative that ceases the scheduling requirement and increases the amount of material that CWD will remove.

Under the new alternative, because scheduling was dropped, CWD will drive each street and alley where regular trash collection takes place beginning no earlier than 7AM on the once monthly Saturday collection day assigned in the City's Annual Trash and Recycling guidelines publication.

The Trash and Recycling "Guidelines" publication outlines materials accepted and prohibited from collection under the bulk waste program.  A copy of the "Guidelines" is attached to this agenda communication.  Materials accepted for disposal are now limited to five (5) total individual items.  Under the recommended alternative, this changes to a six (6) cubic yard limit of materials.  This is a volume of three (3) feet by three (3) feet by eighteen (18) feet.  This is about six (6) typical clothes dryers set side by side in the customers typical waste collection area.  This is a considerable increase of materials collected.  If acceptable materials are out, up to the six (6) cubic yard limit will be collected.

For monthly waste services, a typical resident now pays $15.02 per month plus a separate $0.57 Household Hazardous Waste Fee, a total of $15.59 per month.  Of the $15.02 waste services portion, CWD is paid $7.92 as of the June 1, 2021 rate resolution.  To provide enhanced bulk waste services as proposed, CWD's payment will increase by $0.66 monthly to $8.58.  Due to the Solid Waste Fund's financial condition, these enhanced services can be provided at no increase in the customer's monthly payment to the City.  Just as a side note, the cost difference between what the citizens pay the City and what the City pays CWD, is largely used to pay North Texas Municipal Water District disposal charges for the wastes taken to the transfer stations by CWD and then disposed of at the Regional Disposal Facility that NTMWD operates.

Attached is the proposed CWD Contract Amendment No. 4.  The amendment changes the bulk waste program as is discussed in this agenda communication and sets the initial cost for the enhanced services.  The City's Waste Services Rate Resolution will be brought forward for Council approval as the next agenda item should City Council approve this contract amendment.

The Solid Waste Fund is an enterprise fund that operates without General Fund support.  Staff included a $300,000 budget contingency in the FY22 Solid Waste Fund budget as a placeholder to pay CWD for enhanced residential bulk waste services.  The annual cost of the $0.66 per month cost increase is about $237,600 in FY22.  With the full $300,000 contingency programmed for the bulk waste enhancement, the fund is projected to end FY22 with $3,180,422 in fund reserve: that is 154 days of reserve.  Our actual cost being considerably less than the $300,000 budget contingency will further increase the fund reserve and the fund's days of reserve.  Our guideline fund reserve is 90 to 120 day range and the fund is safely above that range.

Staff recommends that City Council Authorize the City Manager to Execute a Fourth Amendment to the Contract for Solid Waste Collection, Disposal, and Recycling Services with Community Waste Disposal (CWD).

I make a motion to Authorize the City Manager to Execute a Fourth Amendment to the Contract for Solid Waste Collection, Disposal, and Recycling Services with Community Waste Disposal (CWD).