Solid Waste Pros/Cons - Updated

I received two emails this morning in response to my posting here. I provide answers to them as follows:

The first:

The new trash fee will be $233 (MAYBE it will go down to $220, but no guarantee).  However, all cost bases are going off the $220 number.  I feel that is a big mistake.  There is no $20 savings per resident.  There is only $7, based on the assumed current cost of trash pickup being $240.  So stickers to the dump will cost $20 now, which means the residents net cost is $13 for those wishing to use that service.  It is not a wash.

Do you know where they are getting the 800,000 from?

Let's walk through this step by step. It can be confusing and easy to mix up the numbers to end up with incorrect math. I caught one of my own mistakes as I went through this.

1 - The current annual is $244. That is 4 quarter charges of $61 dollars per quarter.
The proposal on Wednesday 2/10/10 was shown as $233
So the savings of this proposal would be $11.

Considering the Beaver St Sticker fee would increase from $10 to $20, the net savings for the approx 2500 folks considering the $11 savings for the annual curbside fee would be $1.

2 - The original proposal of the new system would $220. This does still require a Council vote but I think would be likely. More likely than not. The further savings of $24 dollars would come from use of a surplus of the Solid Waste enterprise account. Jeff Nutting has mentioned this a couple of times. Application of the surplus against the curbside fee would allow for the $220 annual fee for the next two years.

You may argue that the application of the surplus would be better used elsewhere. Those could be options to consider. Considering the cast flow and time value of money, the savings provided by the reduced fee to Franklin residents today would be better.

However, assuming the $220 becomes the new system fee, the resulting savings is $24 per resident per year.

Applying the $24 savings to the increase in the Beaver St fee it becomes better than a wash which I did claim earlier. The resident now saves $14.


Annual Curbside fees  
Current         244
Proposed 1    233
Savings 1       11
  
Current         244
Proposed 2    220
Savings 2       24

   
Beaver St sticker  
Current          10
Proposed        20
Increase       -10

3 - The $800,000 is the gross amount required to fund the totters/bins required (with some spares). Jeff Nutting has said a couple of times that the full amount may not be needed. Historically, an amount authorized for borrowing if not fully utilized can be rescinded and has been rescinded. You can check the actions for the Town Council meeting on February 3rd, where two prior bond authorizations were rescinded as no longer required.

Per Jeff it is $45 per totter/bin and we need 2 for each resident. $90 per resident at 8600 residents comes out to $774,000 or $800,000 in round numbers.

The $800,000 would be borrowed against the enterprise account to finance the purchase of the totter/bins over a five year period. This amount is included in the calculations that would still result in either the $11 savings or the $24 savings.
   
4 - As I went back through my notes and the Town video archives, the presentation to the Council at the January 20th meeting showed a $3 over flow sticker. Assuming the $24 savings, this would allow residents to obtain 8 overflow stickers and still break even for the year ($3 x 8 = $24).


The second:

You refer to a $20 savings in your article, but I thought the savings is only $11. Which is correct?

Actually based upon the above, my "savings of $20" is an incorrect calculation. It should be $24. It currently is $11 until the Town Council approves the budget which as I mentioned above is likely to bring it to $24.

I hope this helps to clear up some confusion around the numbers, some of which I contributed to with my own math error. 

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For additional information:

1 - You can review the Town Council meetings on the video archive here
http://franklinma.virtualtownhall.net/Pages/FranklinMA_Webdocs/videoarchive


2 - You can review the solid waste presentation to the Town Council on 1/20/10 here
http://franklinmatters.blogspot.com/2010/01/live-reporting-solid-waste.html


3 - My summary of the recent Town Council meetings covering this topic
2/10 -> http://franklinmatters.blogspot.com/2010/02/town-council-021010.html
2/03 -> http://franklinmatters.blogspot.com/2010/02/town-council-mtg-smry-020310.html
1/20 -> http://franklinmatters.blogspot.com/2010/01/town-council-mtg-smry-01202010.html

Solid waste - pros/cons

While it is a done deal with the Town Council approving to set the new trash fee at $233 per year (with future action to possibly reduce it to $220 per year) let's recap the impact on the average homeowner.

My typical trash day:

What it could be with the two new tooters:

Approx 2,500 people get stickers at Beaver St to dump trash there. The cost for the sticker will go up $10 to a total of $20. But the annual curbside pickup service rate drops from $240 to $220 so it is a break-even situation for those 2,500 folks. They pay $20 for the Beaver St sticker but save $20 $24 on the annual curbside rate. For the other approx 6,000 Franklin trash users, they all save $20 $24 per year. Franklin has a net savings.

Franklin residents currently would need to buy and maintain their own trash barrels. The Town does supply the current recycle containers. In the new system, the Town will buy and maintain new 65 gallon tooters or bins or trash barrels with wheels. The wheels should allow for easier movement from garage or wherever to the sidewalk or curbside. If a wheel comes off, call the DPW and they'll get it repaired. All this is included in the $20 $24 per year savings.

The totters (bins, barrels, etc) would be purchased from the enterprise account. With current interest rates, the financing cost will be minimal and after a projected five year payback, the Town owns the totters. The annual rate can drop as the financing is complete. The Town could elect (and probably should elect at that time) to put some of the project $19 savings aside in the enterprise account for future purchases to replace the totters as they wear out after ten years. All this would be done with the existing $20 $24 per year savings and a possibility for more after five years.

Some fear that the large totters with wheels will be too hard to navigate from the garage/shed/wherever to the curbside. Well it seems to me something can roll a whole lot easier than it can be carried even if the ground is uneven. The Town has committed to give the 65 gallon containers a trial period. At different times it was talked of from 3-6 months, after which if someone really needs a smaller container, they can have one. There would be no reduction in fee for the smaller size. They would still benefit from the overall $20 $24 annual savings.

Some fear that the 65 gallon container would not be sufficient for their normal trash usage. This might be a good opportunity to look at your trash usage and perhaps try to recycle more, or change your purchases to avoid creating so much trash. For those few times a year (holidays and special parties, in particular) where the 65 gallon container would not be enough, the resident could obtain (in some not completely specified manner) a sticker to put out an additional bag (at presumably an additional cost). It could also be an opportunity to be careful about what goes into the container when it would be anticipated to get too full and hold some of the trash for the following week when there would be more space. It could also be an opportunity to put some in with a neighbor (assuming they have room). It could also be cause for the resident if this happens on too frequent a basis, to actually obtain an additional 65 gallon trash container and pay the additional fee for it. How many residents would fit into this category on a regular basis? Good question, I don't believe anyone knows. 

Given the one uncertainty and the more compelling cost savings considered above, I think the Council made a good choice. The final result will clearly be known overtime as the new system gets implemented.

Updated - I caught a math error of my own that was replicated throughout this posting. Subtracting 220 from 244 is 24 not 20.

Town Council - 02/10/10

The collection of posts live reported from the Town Council meeting on Wednesday can be found here:

• Live reporting - closing
• Live reporting - legislation
• Live reporting - Senior Outreach
• Live reporting - Town Council  

Spilka and Vallee to Hold Office Hours in Franklin; Fri - Feb 19th

Senator Karen Spilka to Hold Office Hours in Franklin

Join Senator Spilka and Puja Mehta, Senator Spilka's District and Constituent Services Director, for coffee and conversation.  They will update constituents on the latest news and events, and answer any questions you may have.

Friday, February 19, 2010

Franklin: Elizabeth's Bagels and More

10:00 a.m -11:00 a.m.

456 West Central Street, Franklin

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Rep. James Vallee, D-Franklin, will hold walk-in office hours on Feb. 19 in Medway and Franklin.

Vallee or a member of his staff will take visitors at the Medway Town Administrator's office on 155 Village St. from 9 to 10 a.m.

From 10:30-11:30 a.m., he or a staff member will be at his Franklin office at 4 West St.

He and his staff may be reached at 617-722-2600 or Rep.JamesVallee@hou.state.ma.us.

In the News - trash fee reduced, Seniors get aid

Franklin sets new trash fees

from The Milford Daily News News RSS by Ashley Studley/Daily News staff

Franklin seniors missing out on aid

from The Milford Daily News News RSS by Ashley Studley/Daily News staff

"a real positive service for the whole community"

Despite a tight budget, state Rep. James Vallee, D-Franklin, has announced that more than $30,000 in state funds has been awarded to area Councils on Aging.

On Friday, Vallee said Franklin was awarded $22,841 and Medway received $10,346.

"In tight budget years (the state) is generally cutting programs, but this particular program went up" he said Monday. "It's indicative we're satisfied with the way grants are being utilized."

Each town was granted $7 per senior citizen. Vallee said last year, towns were only allotted $6.50 per senior.

 Read the full article in the WickedLocal pages here

Grants to help seniors

from Wicked Local Franklin News RSS by Ashley Studley/Daily News staff

Live reporting - closing

Councilor comments
Zollo - thanks for the participation tonight. The amount of preparation and process was important. I would recommend you focus with the same level of interest and forethought at budget time. That is a very important process.

Pfeffer - he said it much better than I could, please come again

Jones - reiterate with Zollo and Pfeffer said, come out again

Whalen - I was really happy with the level of interest in this issue. I did listen to all the concerns raised tonight. They just didn't counter balance the three benefits, (1) reduced cost, (2) increased recycling and (3) the overall efficiency of the system.

A lot of people said that you didn't realize the hidden costs in this. I can not agree, Jeff, Brutus put in a lot of time and effort in this.

Mason - I was in Baltimore and saw their snow removal operation, I want to thank Brutus for the excellent work they do.