A comparison of the city's trash privatization bids

Posted on Feb 14, 2011 in Behind the Scenes by eParisExtra

Here is a spreadsheet comparing the privatization bids of Waste Management and Sanitation
Solutions to take over residential trash pickup and disposal for the City of Paris.
Proposers were required to submit a proposal mirroring the city’s current twice-a-week
residential collection service to its approximately 7,868 customers. The winning bidder must
buy the city’s garbage trucks and must offer employment to current city employees performing that
service with compensation equal or better than their current wages, and must agree not to lay off
any of the former city employees (for non-performance reasons) for a minimum of two years.
	WASTE	SANITATION
	MANAGEMENT	SOLUTIONS
RESIDENTIAL COLLECTION COST:
Monthly Residential Pickup Cost Per Household (as submitted by the bidder)	$6.94	$6.74
Annual Collection Costs (bid x 7,868 homes x 12)	$655,247.04	$636,363.84
LANDFILL DISPOSAL COST:
(per Kevin Carruth Landfill RFP Cost Analysis)	$174,802.05	$204,834.25
Monthly Landfill Disposal Cost Per Household (Annual Cost / 7,868 / 12)	$1.85	$2.17
STREET SWEEPING:
Curb Mile Bid (Residential & Commercial Zones, 300 curb miles, 4 times per week)	$42.00	$17.00
Annual Residential & Commercial Sweeping Cost (Bid price x 300 x 52)	$655,200.00	$265,200.00
Airport Sweeping per sweep (runways, taxiways, hangar areas — twice monthly)	$325.00	$800.00
Annual Airport Sweeping Cost (Bid price x 2 x 12)	$7,800.00	$19,200.00
ANNUAL SWEEPING COST  (Residential Total + Airport Total)	$663,000.00	$284,400.00
Monthly Sweeping Cost Per Household (Annual Sweeping Cost / 7,868 / 12)	$7.02	$3.01
Total Monthly Cost Per Household (Collection Cost + Disposal Cost + Sweeping Cost)	$15.81	$11.92
RESIDENTS’ COMMUNITY DEVELOPMENT COSTS PAID BY SANITATION DEPARTMENT:
Community Development/Structure Demolitions	$155,000.00	$155,000.00
Community Development Lot Mowing (Hiring Partners)	$35,000.00	$35,000.00
Clean-up of Illegal Dumping	$5,000.00	$5,000.00
TOTAL COMMUNITY DEVELOPMENT COSTS PAID BY SANITATION DEPARTMENT:	$195,000.00	$195,000.00
Total Monthly Cost Per Household (Community Development Costs/7,868/12)	$2.07	$2.07
City’s Cost To Mail Out Monthly Residential Garbage Bill	$0.50	$0.50
Total Monthly Administrative Cost Per Household (Community Development + Billing)	$2.57	$2.57
TOTAL MONTHLY TRASH BILL PER HOUSEHOLD ************
(Collection + Disposal + Sweeping + CommDev + Billing)	$18.38	$14.49
Present Monthly Trash Bill Per Household from collection/disposal by City of Paris	$15.89	$15.89
City’s Present Annual Cost
for Residential Trash Collection, Disposal, Billing & Community Development
(= 15.89 x 7,868 x 12)	$1,500,270.24	$1,500,270.24
Waste Management Would Bill the City each year ($18.38 x 7,868 x 12)	$1,735,366.00
Sanitation Solutions Would Bill the City each year ($14.59 x 7,868 x 12)		$1,367,806.09
Annual Cost of Privatization Using Waste Management
((15.89 – 18.38) x 7,868 x 12)	-$234,986.85
Annual Savings from Privatization Using Sanitation Solutions
((15.89 – 14.49) x 7,868 x 12)		$132,464.15