19940223 Carroll County Unified Municipal Solid Waste Management and Recycling Services Program

Maryland Municipal League's Award For Excellence Competition

Carroll County Unified Municipal Solid Waste Management and Recycling Services Program

February 23, 1994

Ms. Karen Liskey

Maryland Municipal League

1212 West Street

Annapolis, MD 21401

RE: Maryland Municipal League's Award For Excellence Competition

Dear Ms. Liskey:

Please find enclosed the City of Westminster's application for the Maryland Municipal League's Eleventh Annual Award for Excellence Competition. This entry describes a program the City coordinated among six of the eight municipalities in Carroll County which reduced the public cost in contracting services for the collection of solid waste and recyclables.

We hope that the Maryland Municipal League finds the Carroll County Unified Municipal Solid Waste Management and Recycling Services Program an innovative approach towards reducing costs incurred by small municipalities in the provision of public services. We look forward to hearing from you. If there are any question, or concerns, please do not hesitate to contact me at (410) 876-1313, extension 9002.

Very truly yours,

Thomas B. Beyard

Director of Planning and Public Works

TBB/KLT:klt

cc: Mayor and Common Council

APPLICATION

FOR

THE MARYLAND MUNICIPAL LEAGUE'S

ELEVENTH ANNUAL

AWARD FOR EXCELLENCE

Submitted by

The City of Westminster

for the

Carroll County Unified Municipal Solid Waste

Management and Recycling Services Program

Population Category: Over 10,000 population

Respectfully,

W. Benjamin Brown

Mayor

Contact Person: Mr. Thomas B. Beyard

Director of Planning and Public Works

(410) 876-1313, extension 9002

OVERVIEW

Seven of the eight municipalities within Carroll County provide solid waste collection and disposal service to the residents within their corporate boundaries by contracting with a private waste management company. In June of 1992, the contracts for five of the municipalities expired. Prior to renewing their individual contracts, the City of Westminster under the direction and guidance of Mayor Brown, coordinated a program between six municipalities to jointly solicit unified bids for the provision of municipal solid waste management and recycling services. The unified contract would cover a three year period.

The municipalities which solicited the unified bid included the Town of Hampstead, the Town of Manchester, the Town of New Windsor, the City of Taneytown, the Town of Union Bridge, and the City of Westminster. By soliciting bids for solid waste management on a multi-jurisdictional level this program reduced the total cost of providing solid waste and recycling collection services. In the "Request for Bids" the total number of units from each municipality were combined together. The guarantee of a larger number of units permitted private haulers to reduce their overhead costs, and, therefore, submit bids which were lower than those submitted individually to each municipality.

The waste management company which submitted the lowest sealed bid was awarded contracts with five of the municipalities. The Town of Manchester retained their existing contractor, after the contractor lowered their rate equal to the rate quoted in the unified bid. Each of the other five participating municipality executed a separate contract with the successful bidder. Therefore, payment from each municipality is forwarded directly to the waste management company, forgoing the need to create a centralized bookkeeping and finance effort between the municipalities.

SAVINGS

Evidence that the service could be provided at a lower cost under a unified bid scheme was available since five of municipalities had already received individual bids. The contract for Manchester, the sixth municipality, did not expire until the end of 1993, therefore, a separate bid had not been requested.

Specifically, the unified bid approach will save Westminster $10,345.00 in collection costs over the course of the three year contract. Combined with the four other participating municipalities whose savings are clearly known, the total savings over the three year period of the contracts will be $91,175.00.

Under this unified bid approach only Union Bridge would have experienced a higher per unit cost than it would have had under an individual bid. So the that the other four participating municipalities could enjoy the cost savings available under this unified approach, in the spirit of intergovernmental cooperation they each agreed to pay a slightly higher fee to offset the increase that Union Bridge would have experienced. Therefore, Union Bridge retained their existing lower per unit fee, while the other municipalities were still able to save their taxpayers dollars.

Moreover, the cost savings did not end with the signing of the contracts. The bid specified curbside collection of recyclable products, such as glass, paper, and plastic. The contracts went into effect in August of 1993, and during Fiscal Year 1992-93 the combined curbside recycling rate averaged 18.7 percent. With the curbside recycling program, the five participating municipalities saved over $53,500.00 in avoided landfill tipping fees during FY 1992-93, in addition to the savings already described.

APPLICABILITY TO OTHER LOCALITIES AND PUBLIC SERVICES

This type of unified bid scheme can reduce costs to small individual municipalities which must contract with private sector companies for municipal services. Enlarging the number of units serviced by joint approaches allows the provider to experience economies of scale, and offer the service at a lower cost. Small municipalities can then provide the types of services at a cost comparable to that which are typically only found in more densely populated areas.

Furthermore, a unified approach eliminated duplication of efforts, such as the cost of advertising a "Request for Bids" and the cost of supplying bid documents. With the unified approach these costs are borne by several municipalities, and, therefore, are spread equally among them. It is not necessary for each to publish a separate advertisement or prepare and supply copies of the bid document to every interested company. Staff time is also saved in the preparation process, since each municipality does not have to create and produce and individual bid.

This program does not add any additional costs to the process of requesting and awarding bids for public services which must be contracted out to private companies. When public services can be provided at a lower rate, the savings can be used to lower, or maintain, the tax rate. Ultimately, the taxpayer experiences the real savings.

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Environmentalism Solid Waste Management, Westminster City Public Works Solid Waste Management