Rural Waste Collection Options Department of Budget and
Management 01/21/2014
Slide 2
Initial Sanitation Concept Single Exclusive Franchise Agreement
One District /One Vendor to service all rural residents of Hidalgo
County Concern Displacement of local haulers Residents have limited
choice 2
Slide 3
Modified Sanitation Concept Multiple Exclusive Franchise
Agreements Multiple Districts/Multiple Vendors to service all rural
residents. (6 Districts) Concern No guarantee of small hauler
displacement Choices are still limited 3
Slide 4
Public Hearing 08/27/13 - Public Hearing held to consider
public input and commentary regarding the proposed rural solid
waste collection program. CC Recommendation Meet with potential
vendors to understand their concerns and develop project
recommendations 4
Slide 5
RFI Findings 7 Vendors currently service 20,500 rural residents
(56,799 total) 36% of rural households are using private haulers
64% are using a transfer station/landfill and/or illegally
disposing All haulers interviewed would be willing to pay a 5%
franchise fee Vendors willing to operate the transfer stations and
submit franchise fees Existing sanitation model is preventing
haulers from increasing customer base. Transfer stations remain
open to the public 5
Slide 6
Advantages: Identical rate countywide Less vehicular traffic
Fewer haulers to monitor Consistent level of service 6
Slide 7
Disadvantages Displacement of small haulers Does not promote
competition Residents do not have a choice Difficult for one hauler
to service areas with less density due to higher operation costs
7
Slide 8
Advantages Promotes competition Enables all haulers to stay in
business Allows rural residents to choose the best options 8
Slide 9
Disadvantages More vehicular traffic Rate may fluctuate
depending on hauler selected by rural resident More haulers to
monitor 9
Slide 10
Recommendations Based on the RFIs questionnaire responses and
vendor interviews conducted, the following actions are recommended
1.Assess a 5% franchise fee to all waste haulers 2.Assess a fee for
disposal service at the citizen collection stations 3.Consider
privatizing/franchising or assessing a fee at the citizen
collection stations 10
Slide 11
Assess a franchise fee to all waste haulers Utilize
Non-Exclusive Franchise Agreements Open Market Concept All Waste
Haulers are assessed a 5% franchise fee Competition keeps rates low
Under a non-exclusive franchise system, rural county residents will
have a choice of more than one waste hauler because the system is
open to competition to all haulers that enter into an agreement.
The waste haulers deal directly with the public in competing for
rural resident customers. Rural residents get to choose the most
economical vendor. 11
Slide 12
Assess a fee for disposal service at the citizen collection
stations Implement a Pay As You Throw (PAYT) system Residents pay a
variable rate depending on the amount of trash disposed Fee will be
based on volume or weight Options Utilize county staff to assess,
collect and operate the transfer stations or; Privatize the
transfer stations and collect a franchise fee Under a Pay As You
Throw (PAYT) trash program, households are charged for trash
disposal based on the amount of trash they throw away, providing a
direct economic incentive for residents to reduce waste. Will
encourage and initiate recycling efforts 12
Slide 13
Gives rural resident another option to self haul. County would
have an option to collect a franchise fee from awarded vendor Or;
County can assess a fee for waste disposal at the collection
stations 13
Slide 14
Advantages Allows rural residents to choose the best options
County keeps control of the Sanitation Functions Encourages
competition Closes the trash black market Reduces current M/O
expenditures Increases revenues 14
Slide 15
Initial transition and support (illegal dumping) Potential
capital costs (scale or visual) Dedicated Code Enforcement
(equipment and training) 15
Slide 16
Education and Outreach Available Recycling Options Good Code
Enforcement Code Officer have to be heavily involved Target known
bad areas first Conduct surveillance and sting operations Stiffen
penalties and repercussions 16
Slide 17
Franchise Implementation Process 1.Present sanitation program
options and recommendations to Commissioners Court 2.Draft county
sanitation ordinance regarding the franchising of waste haulers
3.Notify affected haulers of planned franchise system program
4.Receive commentary and conduct 2 nd public hearing 5.Draft
Non-Exclusive Franchise Agreements 6.Seek Commissioners Court
Approval and Authorization of ordinance and agreements 7.Haulers
apply for the franchise agreements 8.Commissioners Court issues
franchise agreements via Court Action 9.Franchisee send monthly
revenue collections report as well as monthly 5% franchise fee
10.Franchisee sends annual report to the county 11.County
periodically Audits the Franchisee financial statements (via County
Auditor) 17
Slide 18
Assess a 5% Franchise Fee to all the waste haulers in Hidalgo
County All vendors remain in business Vendors compete for customers
Rural residents choose the best options and rates Keep transfer
stations open (2 options) 1.Operated by county personnel Revenues
would help offset M/O costs or; Fee would be based on volume or
weight 2.Operated by a Private Hauler County would collect an
additional 5% Franchise Fee Qualified employees could be absorbed
by the private vendor Rural residents not willing to contract can
still self haul 18
Slide 19
Free Trash Collection is no economically feasible to County or
Haulers By assessing a fee at the transfer stations, resident
choose whats more beneficial Rural residents will be able to pay a
smaller fee when they self haul by segregating trash and thus take
less to the collection station. County will encourage recycling
Haulers will find themselves with more residents on the open market
looking for waste p/u thus encouraging more business Revenue stream
over M/O could be used to offset cost attributed to Public
Awareness, Clean-Up, Code Enforcement and other initiatives 19
Slide 20
By modifying our current sanitation functions and
responsibilities, Hidalgo County will be encouraging economic
development, helping to reduce fiscal deficits and encouraging
environmental awareness 20