Sanitation Sub-Committee Findings (1)

A Council Sub-Committee was set up to examine the sanitation department regarding costs and expenditures. They were to make recommendations to be considered before final determination was made to dismantle the department and put 25-30 New Albany citizens out of work.
Let me first say that the following scenario is possible because a small group of folks who care, sat down and took a long look at the way the sanitation department is functioning, or rather malfunctioning, and made some important discoveries that could lead to better, more efficient, operations.
It is a classic case of reorganization and restructuring that any business must undergo from time to time in order to remain effective and viable.
Rather than throwing up hands and succumbing to “bankruptcy”, or failure to succeed due to mismanagement, these recommendations set a new course for success by eliminating unnecessary costs, and streamlining efficiency with a sensible approach to fixing the things that have, with time, become an ineffective way of conducting business.
The results of their work are contained in a written report that recommends a two-year transition of core points of operations within the department. If these recommendations are followed, the results would entail;
The employment of 32-35 living wage jobs, collectable payroll taxes on approximately $1 million annually, preserving city control of sanitation services, and a 2006 department surplus of approximately $34,000 dollars. This is in stark contrast to a 2005 estimated department deficit of more than $550,000 dollars.
More importantly, if the sub-committee’s recommendations are followed, in 2007 the department could produce $687,000 in profit revenue.
I submit that there are still additional considerations and opportunities, which could substantially impact the surplus in a positive nature. We will discuss these other opportunities at a later time. For now, let’s take a closer look at what the sub-committee came up with.
Right now, we are trucking refuse to a company known as Bi-Co, which is located in Louisville off Fern Valley Road. The cost for this procedure is $31.50 per ton, which includes a fee for the “transfer station”.
The recommendation is that the City would run it’s own transfer station, and then take a 36-yard “roll-off” trailer to the Clark-Floyd landfill at a cost of only $21.00 per ton. This change would produce a savings of $207,267 per year in dumping charges alone. It appears to me that they may not have calculated the fuel savings that will accompany this change, which we can assume will be substantial due to the enormous change in mileage. The fuel costs for 2005 were estimated at $59,322 dollars.
Another reorganization recommendation, which is a sore spot for many residents, is the issue of recycling. Currently, we are spending about $18,000 annually to dispose of recycle materials. Plus, there is another $2,000 in directly related expenses with the method we are using. However, there is a local vendor that would PAY US for an estimated $10,000 annually for commingled recyclables. It is recommended that at least one “Big Red” truck, with the separate bins, be used exclusively to pick up recycled materials every other week. This would maximize the usability and reduce wear and tear on these awful monsters, that will be our free and clear after one more year of payments.
For the benefit of persons who are not up to speed on the costs and payments for the "Big Red" trucks and the 96 gallon monster cans, let me catch you up on this bumbling of funds.
When the previous administration, Mayor Overton, decided to make these purchases, the Council approved payments to be made for the trucks out of Riverboat funds, and the cans were to be paid from EDIT dollars. Contrary to the Council edicts, these costs have been attributed to the Sanitation budget, and are included in the "budget shortfall" that Mayor Garner continues to espouse. The cans alone had a total cost of $589,525 dollars, and will not be paid for in full until 2007 when we make the final $121,000 installment. By the fall of 2006, the trucks will be paid in full. I am searching for the total costs of the trucks and will provide this number in a following comment.
This information is only the beginning. Part 2 will be posted soon, so stay tuned.
Thoughts anyone?