AGENDA MEMO
City Council
March 15, 2010
Issue
Statement
Consideration of a motion to implement a cost schedule
for delivery of wood chips to residents, businesses, and taxing districts in
the amount of $35 for a half load and $55 for a full load. BACKUP
Background/History
At the February 23, 2010, budget meeting the Council
discussed establishing a fee for delivering wood chips to residents. Currently
the Municipal Services Department delivers wood chips to residents, businesses
and local taxing districts at no charge. The Council’s interest in charging a
fee is to recoup certain costs that are associated with the program. The Administrative/Finance
Committee reviewed the attached sheet showing the expenses associated with the
program. The consensus was to re-coop the amount of money the City anticipates
paying for double grinding the brush. That amount is estimated at $8000.
Staff estimates that an average of 180 various loads
have been delivered during the last two years of which approximately 90 have
been full loads. Therefore, based on delivering 180 loads and recouping our
double grinding expense of $8,000 the
fee would be as follows:
90 half loads at $35
per delivery equals revenue of---------------------- $3,150
90 full loads at $55 per delivery equals revenue
of---------------------- $4,950
Total Revenue--------------------------------------------------------------
$8,100
As a comparison, local suppliers delivered charge would
be approximately $158.00 to $182.00 for a half load and $286.00 to $334.00 for
a full load. There would still be no charge for those who pick up the wood
chips from the public services facility.
Staff
Recommendation
The Administrative/Finance Committee recommends the City
charge $35 for a half load delivery and $55 fro a full load delivery. The staff
would mail out the invoices to residents requesting the delivery.
Alternate
Consideration
Continue program at no charge
Continue program at different service fee
Decision
Mode
This item will be placed on the March 15, 2010 City
Council meeting for formal consideration.