city of north miami beach council conference council...
TRANSCRIPT
CITY OF NORTH MIAMI BEACH Council Conference
Council Chambers, 2nd Floor Tuesday, April 22, 2014
6:00 PM
Mayor George Vallejo Vice Mayor Beth E. Spiegel Councilman Anthony F. DeFillipo Councilwoman Barbara Kramer Councilwoman Marlen Martell Councilman Frantz Pierre Councilwoman Phyllis S. Smith
City Manager Ana M. GarciaInterim City Attorney Dotie Joseph
City Clerk Pamela L. Latimore, CMC
Notice to All Lobbyists Any person who receives compensation, remuneration or expenses for conducting lobbying activities is required to register as a Lobbyist with the City Clerk prior to engaging in lobbying activities before City Boards, Committees, or the City Council.
AGENDA
1. ROLL CALL OF CITY OFFICIALS
2. DISCUSSIONS
2.1 Solid Waste Workshop
3. ADJOURNMENT
City of North Miami Beach 17011 NE 19 Avenue
North Miami Beach, FL 33162 305-947-7581
www.citynmb.com
MEMORANDUM
TO: Mayor and City Council
FROM:
VIA:
DATE: Tuesday, April 22, 2014
RE: Solid Waste Workshop
BACKGROUND ANALYSIS:
RECOMMENDATION:
FISCAL/BUDGETARY IMPACT:
ATTACHMENTS:
Memo
Solid Waste Presentation
Solid Waste 3 Options
Solid Waste Workshop
Presentation byAna M. Garcia, City Manager
Mac Serda, Assistant City Manager
Esmond K. Scott, Director of Public Works
Barbara Trinka, CPA, Acting Director of Public Services
Janette Smith, CPA, Director of Finance
April 22, 2014
Council Conference Meeting
� August 2012 RFP2012-20 issued for Solid Waste and Recycling Services Assessment
Evaluation & Analysis of Division Operations & Development of Operational Plan Development
� November 2012 Kessler Consulting Inc. awarded RFP
� November 2013 Final Operational Plan
� December 2013 Solid Waste and Recycling Services Assessment
� April 2014 Staff Report Presented at Council Conference Workshop
�Our Operation
�Kessler’s Major Recommendations
�A Financial Overview and Assessment
Timeline
Page 2
Our
Solid Waste
Operations
Page 3
Solid Waste Operations – Org. Chart
Director of Public Works
Operations Manager II
Commercial Residential Trash Recycling Litter
Crew
Admin.
(1) Op Foreman
(2) MW I
(2) MW II
(5) MEO (Drivers)
(1) TTO (Driver)
(4) MEO
(Drivers)
(1) TTO (Driver)
(1) Op Foreman
(1) MW II
(8) MEO (Drivers)
(2) Vacancy (Drivers)
(1) Vacancy (Div. Supt.)
(1) MW I
(1) MEO (Driver)
(1) MW I
(3) MW II
(1) Code Officer
(1) Admin Asst. 1
Page 4
A. 39 Full Time Employees
B. 3 more FTEs needed for optimum operation and enhanced initiatives
Typical Daily Operation Equipment
Page 5
(4) Sidearm Garbage trucks
(3) Commercial Frontend Loaders
(6) Trash/Rolloff trucks
(3)Payloaders
(1) Rolloff Compactor
(3) Pickups
x 1= Green Machine
Commercial Operation
(1) Rear Loader Recycling (1) Commercial Frontend Loaders
Residential Garbage
Operation
Residential Trash
Operation
Emergency Trash and
Litter Operation
23
Pieces of
Equipment
Kessler’s
Major Recommendations
Page 6
� Reduce staffing from 39 to 18 positions�no placement assistance or recommendations for eliminated employees
� Reduce Residential Garbage Pickup to once a week
� No alley garbage pickup
� Strict Enforcement of bulk trash pickup (size and weight)
(Chapter 18 Titled Solid Waste Management Section 18-10.1)
� Convert to rear loading trucks
Kessler’s Major Recommendations
Page 7
Collection Services
Page 8
Kessler Report (Recommendation) CNMB Response
Residential Garbage Collection Residential Garbage Collection
Four 10-hour days Costly: school zones, traffic patterns, rush hour,
counter-productive to 9-5; affects Fleet
Management; could be 12 hour days
Once per week garbage pickup and no alley
collection
Commitment is to maintain or enhance: not
decrease services
Four routes operation Typical operation is four routes
Bulk Trash Bulk Trash
Enforce City ordinance for bulk trash with size and
weight restrictions to facilitate alternative collection
methods
Delicate balance between enforcing an ordinance
and having a clean city. Majority of the time there is
compliance. Operation is: Pick it Up!
Reduction in labor force by replacing wheel loaders
and trash trucks with rear loaders (no placement
assistance)
Recommending introduction of self loaders instead
of rear loaders. Usage of rear loaders is an archaic
practice with heightened risks to personnel and
liability to city
Commercial Garbage and Residential Recycling
Kessler Report (Recommendation) CNMB Response
Commercial Garbage Commercial Garbage
Maximize container sizes Constant evaluation to determine
appropriate level of service
Frequency of Pickup is important for health
and safety of residents and customers
Residential Recycling Residential Recycling
Revenue Sharing Will explore other opportunities
Consider weekly collection Consider larger containers: benefits vs. Costs
analysis needed
One Municipality does monthly recycling through the
Interlocal Agreement with Miami Dade County
Larger carts Larger carts available
Page 9
Financial
Overview
Page 10
In House vs. Outsourced Net Cost of Service
Year 1 Year 2 Year 3 Year 4 Year 5
Current Potential Current Potential Current Potential Current Potential Current Potential
Revenues $10,317,000 $10,328,000 $9,927,000 $9,647,000 $9,486,000 $9,647,000 $9,696,000 $9,647,000 $8,710,000 $9,647,000
Expenses
Personnel 2,918,000 1,015,000 2,978,000 907,000 3,001,000 914,000 3,063,000 932,000 3,087,000 939,000
Operating 4,030,000 6,518,000 4,138,000 6,255,000 4,249,000 6,268,000 4,364,000 6,282,000 4,482,000 6,295,000
Capital 1,759,000 50,000 1,292,000 50,000 851,000 50,000 1,061,000 50,000 75,000 50,000
Non
Operating
1,610,000 967,000 1,679,000 967,000 1,885,000 967,000 2,102,000 967,000 2,160,000 967,000
Total
Expenses 10,317,000 8,550,000 10,087,000 8,179,000 9,986,000 8,199,000 10,590,000 8,231,000 9,804,000 8,251,000
Net
Increase
(Decrease)
$ - $1,778,000 $(160,000) $1,468,000 $(500,000) $1,448,000 $(894,000) $1,416,000 $(1,094,000) $1,396,000
Savings $1,778,000 $1,628,000 $1,948,000 $2,310,000 $2,490,000
Page 11
Potential savings for outsourcing is $10m over the next 5 Years
Does not include Long-Term Pension Savings
Use of Existing Funds
Currently Available ~ $4 Million unrestricted
Potential Uses
�Reinvest in Sanitation Fleet and Equipment
�Reinvest in Public Works, Police, Parks and Code Fleet
�Use for Initiatives determined during Strategic Planning
�Gateway signage
�Improved street lighting
�Security Cameras/Safety Initiatives
�Beautification Improvements
�Infrastructure/facility improvements
�Master Plans: Streets, Facilities, Landscaping and Median, Parks, Traffic Calming
�Provide up front cost of Annexation
�Energy Improvement Initiatives/Reduction of Carbon Footprint
�Restructuring of Garbage Rates
�Fund Pension Plans
�Reduction of Solid Waste fees
�Portion to be placed in Reserves
Page 12
Impact of Outsourcing on Personnel
Staffing # of Employees
Current Staffing (FTEs) 39
Employees Remaining with City 11
Employees Pending Retirement 5
Positions to be employed by Selected Vendor(emphasis on employees who are residents)
23
Page 13
Provide Additions and Enhancement to Existing Services
Duties of Retained Solid Waste PersonnelIf Solid Waste is Outsourced
� Oversee Operations of Selected Vendor
� Trash Response Team
� Litter Pick: Streets, Parks, Medians, Canal Banks
� City parking lots and street sweeping
� Alley Maintenance
� Shopping Cart and Dead Animal Removal
� Supplement in-place FEMA Vendors during Emergency Operations
� Cross train employees to supplement other city services/special details
Page 14
Conclusion
Page 15
Kessler Report Conclusion
� NMB cannot compete with outsourced provider
�Kessler’s Recommendation reduces services, displaces employees with
no options for employment and still cost $711,454 more than
outsourcing
Internal Analysis Conclusion:
� Confirmed and Audited Financial Data
� Outsourcing would save $10M over 5 Years
In Brief
Page 16
Thank You
Page 17
Glossary for Financial Analysis
Item Description/Example
Current In House
Potential Outsourcing
Revenues Fees for services, lease proceeds, franchise fees, etc.
Expenses - Personnel Salaries, pension, accrued leave payouts, insurance, workers
compensation, unemployment compensation, etc.
Expenses – Operating Tipping/disposal fees, vehicle repairs and maintenance,
customer service/cashiers allocation, etc.
Expenses – Capital Vehicle and equipment purchases, financed equipment, etc.
Non-Operating Interest and principal payments on debt, liability/self
insurance fund contribution, alley restoration program
contribution, and City’s Return on Investment (ROI)
Net Increase (Decrease) Revenues less total expenses
Savings Net Potential (Outsourcing) less Net Current (In House)
Return on Investment
(ROI)
10% of Operating Revenues contributed to the City as the
owner of Solid Waste and to cover administrative costs
Page 18
5 Year Financial Analysis Assumptions
Page 19
Description
Current
(In House)
Potential
(Outsourcing)
Cost-of-living adjustment (YR 2 & 4) 1.5% 1.5%
Pension Increase YOY 2.5% 2.5%
Insurance Increase YOY 3.0% 3.0%
Tipping Fee Increase YOY 3.0% 3.0%
Other Operating Increase YOY 2.0% 2.0%
Franchise Fee – Revenue (YR 1 – YR 5) $0 $4,686,715
Accrued Leave Balances Payouts (YR 1) $0 $125,729
Unemployment Compensation (YR 1 – YR 5) $0 $312,523
MDC Recycling Container/Cancellation Fee (YR 1) $0 $275,520
Proceeds from one time sale of assets (YR 1) $0 $680,289
Vehicle/Equipment Replacements (YR 1 – YR 5) $4,586,308 $250,000
Contribution to the General Fund (each YR) $877,000 $877,000
City of North Miami Beach Solid Waste Alternatives
April 11, 2014
OPTIONS
Kessler Recommendations
Outsource (Negotiated Contract)
Reinvest in Existing Operation
Pros Cons
Savings of $1.3 million per year Reduction of Service (1 day/week garbage)
No Garbage Alley Pickup
Layoff 21 employees without options for re-employment
Strict enforcement of bulk trash (weight, size and bundling)
Conversion to rear loaders (safety concern)
10-hour work day (costly counterproductive)
Continued exposure to potential liability
Major capital investment required immediately
No opportunities for enhanced/ additional services for City
Pros Cons
Savings of $2.0 million per year Service delivery equivalent to current operation
Guaranteed fixed cost for 3 years, increase in subsequent years limited to 3% or CPI (whichever is less)
Options for re-employment of layoffs w/selected vendor
No cost for city facilities/special events
Reduction of potential liability
No job losses provided employees meet minimum City employment standards (to be negotiated in outsourced contract)
11 member task force of retained Sanitation employees will provide additional and enhanced services to our City: Trash Response Team Litter pick - streets, medians, parks canal banks Parking lots and street sweeping Alley maintenance, Graffiti removal/sidewalk and overall pressure cleaning Shopping cart and dead animal removal Supplement Emergency Operations Cross-train to supplement other city services and special details Overall enhanced beautification of City. Transfer of 23 City jobs to private company
Pros Cons
No layoffs
Maintenance of current service levels No cost savings
Continued exposure to potential liability
Major capital investment required immediately
No opportunities for enhanced/ additional services for City
Investment in 3 additional positions needed for optimum operation