Paul Is Talking Trash
By: Paul Guttenberg, Candidate for Town Council Ward I
Exploring Cost Control and Service Improvements for La Plata's Sanitation Services
This article explores potential strategies to manage the costs of La Plata's residential and commercial sanitation services effectively, enhance their efficiency, and ensure fair billing for residents. I will examine our current sanitation service structure and present examples of approaches that the Town Council could consider in the future.
The ideas shared here serve as an illustration of a proactive approach to service cost management. A willingness to critically evaluate options will be essential for the next Town Council as we navigate the ongoing challenge of balancing service costs with affordable rates for La Plata’s residents, while also addressing the increasing operational and infrastructure costs of our critical town services. This type of thinking and analytical approach can be applied to any town service to ensure we continuously seek opportunities to improve service delivery and pricing for the benefit of the public.
As we carefully evaluate these and other potential changes, we may ultimately determine that the current pricing structure for our self-funded sanitation service adequately balances costs and service delivery, and no immediate changes are necessary for a following budget year. I encourage you to read this article with this open and analytical perspective in mind. Please treat it as a thought exercise.
Understanding La Plata's Current Sanitation Service Costs
This analysis will focus on the two primary components of La Plata's Sanitation Service: Residential and Commercial. For each, I will evaluate opportunities to control costs to residents and incentivize more efficient service usage.
Residential Sanitation: Analyzing the Current Flat-Fee System
The town incurs several costs associated with residential sanitation services. These include relatively predictable expenses such as labor, residential garbage receptacles, vehicle operation, maintenance, and replacement. However, a significant and increasing cost is the weight-based fees for the use of the county landfill for waste disposal. This trend of La Plata’s rising landfill costs, if not addressed, may require increases in the fees for our self-funded sanitation service in the future.
To avoid or reduce future rate increases, we can evaluate the current flat-fee billing structure for residential sanitation services. To evaluate the current residential service, the Town Council would need to start with the following data from the Town Manager:
Total Residential Sanitation Customers : For this simplified example, let's assume the total number of residential sanitation customers is 3,700.
Number of Customers with Multiple Cans: The number of residential customers assigned 2 cans and the number assigned 3 cans.
Current Flat-Fee Residential Sanitation Service Simplified Analysis
Under the current flat-fee system, if each of the 3,700 residential customers pays $100 per quarter, the residential sanitation service generates (3,700 x $100) = $370,000 per quarter, or $1.48 million per year (Note: All financial figures presented are hypothetical for illustrative purposes only). This total revenue must cover all operational costs for the residential sanitation service. While operational costs like labor, vehicles, and other service infrastructure are generally predictable, the primary cost driver with the most variability is the landfill usage, which is directly related to the weight of the daily collected garbage delivered to the county landfill by the town.
In summary, the current flat-fee structure generates a hypothetical annual revenue of $1.48 million, which in this hypothetical example forms the basis of the sanitation service's enterprise fund budget.
Proposal: Transitioning to a Per-Can Fee for Residential Customers
One potential solution to address rising landfill costs and improve billing fairness is to move from a flat fee to a per-can fee for residential customers. This approach would more equitably distribute the costs, charging residents who generate more waste accordingly, often due to factors such as larger or multi-generational households. This approach could also help avoid cost increases for residents who are more efficient with recycling or have smaller one or two person households.
Simplified Analysis of an Alternative Per-Can Billing Model
Let's analyze a simplified model of this alternative billing approach:
The Total Residential Sanitation Customers remains at 3,700. Based on a hypothetical report from the Sanitation Department, let's assume:
6% of residential customers (222) have 2 cans.
1% of residential customers (37) have 3 cans.
Therefore, 93% of residential customers (3,441) have 1 can.
Here's how revenue could be generated under a per-can fee structure:
Residential Customers with 1 Can (3,441): The price for a single-can residence remains at $100 per quarter. (3,441 x $100) = $344,100 per quarter
Residential Customers with 2 Cans (222): The price for a two-can residence is $100 per quarter for the first can and an additional $70 for the second can, totaling $170 per quarter. (222 x $170) = $37,740 per quarter
Residential Customers with 3 Cans (37): The price for a three-can residence is $100 per quarter for the first can and $70 for each additional can, totaling $240 per quarter. (37 x $240) = $8,880 per quarter
Total Revenue Using a Per-Can Model:
The total revenue generated under this per-can model would be ($344,100 + $37,740 + $8,880) = $390,720 per quarter, or $1.56 million per year.
Benefits of the Per-Can Fee Model for Residential Sanitation Service:
This (hypothetical costs) model would generate an additional $82,880 per year for the sanitation services operational budget. This represents a potential 5.6% increase in this examples hypothetical operational budget without requiring a rate increase for 93% of residential customers (those with only one can). Furthermore, it incentivizes residents who generate larger volumes of trash to either find ways to reduce their waste (through better recycling or other means) or to accept a fairer distribution of the additional costs their higher waste volume imposes on the service.
Addressing Commercial Sanitation Costs: Additional Strategies
Building upon the understanding that rising weight-based fees at the county landfill are a significant cost driver for La Plata's Sanitation Service, this section outlines potential strategies for the Town Council to evaluate. Working collaboratively with the Town Manager, Treasurer, and Public Works Department, the goal is to identify ways to control costs, improve commercial sanitation service efficiency, and establish an incentivized billing system for our business customers.
Proposed Strategies for Commercial Sanitation Cost Control:
Organics Diversion Programs:
Concept: Explore offering reduced sanitation fees for businesses that actively separate food waste for composting. This would primarily target restaurants, grocery stores, and similar establishments.
Rationale: Food waste is typically heavy. Diverting this significant waste stream from the county landfill can lead to substantial reductions in disposal weight and associated costs. Additionally, it can contribute to extending the lifespan of the existing landfill.
Ordinance Regarding Commercial Dumpster Security:
Concept: Investigate implementing an ordinance that requires or strongly encourages the locking of commercial dumpsters.
Rationale: Securing dumpsters can help prevent illegal dumping and deter waste from outside of La Plata from being deposited in our commercial bins. This aims to reduce instances of overfilled dumpsters and prevent non-town waste from becoming a cost burden for La Plata's Commercial Sanitation Service.
Incentivized Commercial Sanitation Pricing:
Concept: Evaluate a commercial sanitation pricing structure that offers variable fees based on a business's adoption of best waste management practices.
Rationale: Businesses that actively participate in town-sponsored waste reduction programs and implement recommended security measures for their dumpsters (like locking them) could be made eligible for lower sanitation fees. The fee structure would still be optimized to remain a self funded service however the businesses implementing best practices would pay a smaller share of the overall services costs. This approach incentivizes responsible waste management and can contribute to overall cost control for the town's sanitation services.
Final Thought
This analysis exemplifies how I, if elected as your Ward I Town Council member, would work to manage toward more efficient, cost-effective and equitable town services. I will champion community engagement and analysis to inform decisions, and I am prepared to make and defend those informed decisions as a responsible representative and resident.
For better town government we must increase La Plata’s voter turn out for our local elections.
Please Vote on May 6th. You can find contact and candidate information for all the general election candidates on the town website. Please also share this information with your friends and family, and encourage them to vote.
Many candidates are also active on Facebook especially within the La Plata Community Group.
A “Vote Local” Plan For Town Council & Mayor
1. Plan To Vote:
Please Verify Your Voter Registration Status. If you are not a registered voter, please let this town election be your first! Links for first time Maryland voter registration are on this page.
2. Share Election Information:
Please Share Election Information with Your Family, Friends & Neighbors Who Live in the Town of La Plata. www.voteguttenberg.org/vote-local/
3. Cast Your Ballot On Tuesday, May 6th 2025.
Voting occurs in person at the La Plata Town Hall, located at 305 Queen Anne Street.
Voting hours are 7 am to 8 pm on election day, Tuesday May 6th.
I ask that you consider voting for me as your Town Council representative from Ward I.
More than anything I hope you take the time to vote, and that you encourage others to do the same. When residents vote in larger numbers, it increases the emphasis for elected town leaders to engage and respond to concerns expressed by the public.
Thank you.
Respectfully,
Paul Guttenberg, Candidate for La Plata Town Council Ward I
