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Res 29-92 RESOLUTION NO. 29-92 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, URGING THE SOLID WASTE AUTHORITY TO CONTINUE ITS PRESENT DISPOSAL BILLING SYSTEM, AND TO CONTINUE WORKING CLOSELY WITH MUNICIPALITIES TO DEVELOP WASTE REDUCTION/MINIMIZATION PROGRAMS. WHEREAS, the Solid Waste Authority of Palm Beach County is considering a split assessment system and a volume based system of charging waste disposal fees; and, WHEREAS, the Solid Waste Authority created a special sixty (60) day task force to investigate the assessment and fee issues; and, WHEREAS, this task force is submitting a recommendation that would substantially change the method of charging disposal; and, WHEREAS, the City has developed recycling programs that are successfully reducing the amount of waste that must be placed in disposal facilities; and, WHEREAS, the Solid Waste Authority should continue its present billing system, and should continue to work closely with municipalities to develop waste reduction/minimization programs that meet the common goals of the municipalities and the Solid Waste Authority, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. The above recitals are incorporated as though fully set forth herein. Section 2. The City Commission of the City of Delray Beach, Florida, strongly urges the Solid Waste Authority to continue its current disposal billing system, and continue working closely with municipalities to develop waste reduction/minimization programs that meet the common goals of municipalities and the Solid Waste Authority. Section 3. The City Commission strongly states that the societal costs for the City of Delray Beach, in the form of social inequity and environmental degradation resulting from increased illegal dumping associated with the recommended disposal billing system, make the recommended system unacceptable. Section 4. The City Commission recommends that the Solid Waste Authority continue to work closely with municipalities to develop solid waste management programs that meet the need of the municipalities while still meeting waste reduction goals. Section 5. The City Clerk is directed to provide the Solid Waste Authority Board and all other interested parties with copies of this Resolution immediately subsequent to adoption. Section 6. This Resolution shall take ef~ct immediately upon adoption. PASSED AND ADOPTED in regular session on this the llth day of March , 1992. ATTEST: MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS SUBJECT: AGENDA ITEM #'~--~F - MEETING OF MARCH 11. 1992 RESQLUTION NO. 29-92 DATE: March 6, 1992 This is a resolution urging the Solid Waste Authority to continue its present disposal billing system, and to continue working closely with municipalities to develop waste reduction/minimization programs. The Solid Waste Authority feels that to adequately address the problem of soaring costs of waste management, a volume based disposal program is necessary. A Split Assessment/Volume Based Task Force has been formed to explore problems associated with a split assessment/volume based "pay-as-you-throw" rate system for waste disposal. As proposed this program would provide single family residents with an incentive to reduce their waste bills by reducing the amount of trash and waste they set out for collection. Based on the experience of other cities, our staff believes this change would lead to wide spread illegal dumping. We are also concerned about the increased cost to lower income families. The Task Force has recommended that, if the current system must be changed, the desired results can be achieved through a combination/goal based disposal billing system without the split assessment. Staff therefore, recommends that the Commission adopt this proposed resolution and further, that the Mayor communicate to the Solid Waste Authority, via letter, the City's opposition to any change in the current disposal assessment structure. Recommend approval of Resolution 29-92 and recommend that the Mayor communicate to the Solid Waste Authority, via letter, the City's opposition to any change in the current disposal assessment structure. 100 N.W. 1st AVENUE DELRAY BEACH, FLORIDA 33444 407/243-7000 March 10, 1992 Karen Marcus Chair, Solid Waste Authority Governing Board 7501 N. Jog Rd. West Palm Beach, FL 33412 Dear Chair Marcus: I am writing this letter to express my deep reservations concerning current proposals for~' change in the method of collecting solid waste disposal charges. The City of Delray Beach has developed programs that reduce our solid waste stream and provide a level of collection service that maintains our goal of a "Clean Community". By changing the disposal assessment, the programs that we have so diligently implemented will be negatively impacted. I remain unconvinced that a volume based disposal system would withstand a cost/benefit analysis in the near or long term future. The opportunity costs, social inequity and environmental degradation, associated with a volume based disposal system outweigh any benefit'this system would encourage. The City of Delray Beach remains committed to providing its residents with effective and efficient solid waste collection programs that meet our common waste reduction goal and provide an appropriate level of'collection service. The City will continue to work closely with the Solid Waste Authority in the development and implementation of environmental programs that contribute to waste reduction. I strongly urge you to maintain the current disposal assessment system, and work within it to meet the common reduction goals of Delray Beach and the Solid Waste Authority. Sincerely, Mayor THE EFFORT ALWAYS MATTERS Board of County Commissioners County Administrator Karen T. Marcus, Chair Robert Weisman Carole Phillips, Vice Chair Carol A. Roberts Carol J. Elmquist Mary McCarty Ken FOster ~ Maude Ford Lee March 19, 1992 Ms. Alison MacGregor Harty, City Clerk City of Delray Beach 100 N.W. 1st Avenue Delray Beach, FL 33444 Dear Ms. Harty: Thank you for sending me a copy of your Resolution No. 29-92 urging the Solid Waste Authority to continue its present billing system for another year, and to continue working closely with municipalities to develop programs for assessment, volume reduction and disposal fees. I have forwarded your Resolution to County Administration with a request that it be placed on the next available Board agenda to be received and filed into the official records. If I may be of further assistance in any way, please don't hesitate to contact me. ~ S4nq.e/rely, Kgr~n T. Marcus, Chair  ar~ of County Commissioners KTM/pw cc(w/enc)= Diane Cahill County Administration "An Equal Opportunity - Affirmative Action Employer" Box 1989 West Palm Beach, Florida 33402-1989 (407) 355-2030 Suncom (407) 273-2030 'CITY OF DELRAY BEACH 100 N.W. 1st AVENUE, DELRAY BEACH, FLORIDA 33444 407/243-7000 FAX NUMBER 407/243-3774 FAX TRANSIVIITTAL DATE: -~- / ~- TO: NAME: /~. ~_~ CITY: TOTAL NUMBER OF PAGES INCLUDING TRANS1ViITTAL SHEET: COMMENTS: COPIES TO: IF YOU DO NOT RECEIVE ALL OF TIlE ABOVE REFERENCED PAGES, PLEASE CONTACT TI-IE SENDER NOTED ABOVE ASAP. RESOLUTION NO. 29-92 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, URGING THE SOLID WASTE AUTHORITY TO CONTINUE ITS PRESENT DISPOSAL BILLING SYSTEM, AND TO CONTINUE WORKING CLOSELY WITH MUNICIPALITIES TO DEVELOP WASTE REDUCTION/MINIMIZATION PROGRAMS. WHEREAS, the Solid Waste Authority of Palm Beach County is considering a split assessment system and a volume based system of charging waste disposal fees; and, WHEREAS, the Solid Waste Authority created a special sixty (60) day task force to investigate the assessment and fee issues; and, WHEREAS, this task force is submitting a recommendation that would substantially change the method of charging disposal; and, WHEREAS, the City has developed recycling programs that are successfully reducing the amount of waste that must be placed in disposal facilities; and, WHEREAS, the Solid Waste Authority should continue its present billing system, and should continue to work closely with municipalities to develop waste reduction/minimization programs that meet the common goals of the municipalities and the Solid Waste Authority, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. The above recitals are incorporated as though fully set forth herein. Section 2. The City Commission of the City of Delray Beach, Florida, strongly urges the Solid Waste Authority to continue its current disposal billing system, and continue working closely with municipalities to develop waste reduction/minimization programs that meet the common goals of municipalities and the Solid Waste Authority. Section 3. The City Commission strongly states that the societal costs for the City of Delray Beach, in the form of social inequity and environmental degradation resulting from increased illegal dumping associated with the recommended disposal billing system, make the recommended system unacceptable. Section 4. The City Commission recommends that the Solid Waste Authority continue to work closely with municipalities to develop solid waste management programs that meet the need of the municipalities while still meeting waste reduction goals. Section 5. The City Clerk is directed to provide the Solid Waste Authority Board and all other interested parties with copies of this Resolution immediately subsequent to adoption. Section 6. This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED in regular session on this the llth day of March , 1992. ATTEST: ~lty Cler~ ! March 17, 1992 Commissioner Karen Marcus P.O. Box 1989 West Palm Beach, FL 33402 Dear Commissioner Marcus: Attached please find Resolution No. 29-92, which was passed and adopted by the Delray Beach City Commission on March 11, 1992. Very truly yours, Alison MacGregor Harty City Clerk AMH/ag Eric. cc: Commissioner McCarty Solid Waste Authority Jack Horniman (PBC Municipal League) , Agenda Item No.: · AGENDA REQUEST Date: 3/5/92 Request to be placed on:, X Regular Agenda Special Agenda Workshop Agenda 3/10/92 When: Description of agenda item (who, what, where, how much): Adoption of a resolution m,,th~ri~ino the Solid Waste Authority tn continue present disposal billing s~stem Recommendation: Approval Determination of Consistency with Comprehensive Plan: City Attorney Review/ Recommendation (if applicable): Budget Director Review (required on all items involving expenditure of funds): Funding available: YES/ NO Funding alternatives: (if applicable) Account No. & Description: Account Balance: City Manager Review: ApprovedHold Until:f°r agenda: / NO ;w~j~ ~, Agenda Coordinator Review: Received: Action: Approved/Disapproved MEMORANDUM TO: DAVID HARDEN - CITY MANAGER FROM: LULA BUTLER - DIRECTOR, COMMUNITY IMPROVEMENT,~ SUBJECT: VOLUME BASED DISPOSAL OF SOLID WASTE DATE: MARCH 4, 1992 ITEM BEFORE THE COMMISSION: A resolution of the City Commission urging the Solid Waste Authority (SWA) to continue its present billing system for disposal of garbage and trash, and to work closely with municipalities to develop programs for waste reduction/minimization. BACKGROUND: The SWA feels that to adequately address the problem of the soaring costs of solid waste management, a volume based disposal program is necessary. This would provide single family residents with an incentive, through the ability to decrease their waste bills, to reduce their garbage and trash. By doing so, the county would be able to reduce solid waste generated within its borders decreasing the need for additional infrastructure and extending the useful life of the existing facilities. In accordance with SWA Governing Board direction a Split Assessment/Volume Based Task Force was formed to explore problems associated with a split assessment/volume based "pay-as-you- throw" rate system for waste disposal. Attendance at these meetings exceeded 40 persons representing municipalities, haulers, and the public, all of whom were treated and participated as Task Force members. The Task Force is recommending that; if the current system must be changed, the desired results of equity and waste reduction can be achieved through a combination/goal based disposal billing system without the split assessment. This system can be implemented with the least impact. The final report of this Task Force, providing recommendations, is attached. RECOMMENDATION: The Department of Community Improvement recommends the adoption of the resolution urging the Solid Waste Authority to continue working within the existing system to reduce waste. It is further recommended that the Commission authorize the Mayor to communicate, via letter, the City's opposition to any change in the current disposal assessment structure. SPLIT ASSESSMENT/VOLUME-BASED SYSTEM TASK FORCE FINAL REPORT AND RECOMMENDATIONS BACKGROUND In accordance with Goveming Board direction on December 18, 1991, the Split Assessment/Volume-Based System Task Force was formed and met weekly to explore the problems associated with both the split assessment and volume-based "pay-as-you-throw" rate system for garbage disposal. Since the first meeting on January 10, 1992, interest in the activities of the Task Force was significant. Attendance frequently exceeded 40 persons representing municipalities, haulers and the public, all of whom who were treated and participated as Task Force members. PROCESS The Task Force utilized an informal, creative problem-solving and consensus building approach that encouraged the active participation of all attendees, not just the Task Force members. This approach involved identifying the problems created by each system, attempting to identify solutions and evaluating how well each system might work in our community. Initially, the Task Force set out to address the problems associated with three "pay-as-you-throw" systems implemented in other parts of the country: Subscription, Bag/Tag, and Combination. During the course of our meetings, other systems emerged as worthy of consideration: Weight-Based, Goal-Based and the Combination System without the Split Assessment. As a framework for planning, goal-setting and monitoring results, the Goal-Based approach received such support that it ultimately became part of the final Task Force recommendation. RECOMMENDATIONS First and foremost, public information and education must be emphasized and generously funded to encourage reduction, reuse and recycling; discourage illegal dumping; and inform the public on solid waste management plans. Secondly, if the current system must be changed, the desired results of equity and waste reduction may be achieved through the Combination/Goal-Based system without the split assessment (See Table 1). Compared to the other systems, this system can be implemented with the least impact. COMBINATION/GOAL-BASED SYSTEM (WITHOUT SPLIT ASSESSMENT) This system provides the customer with a base level of service (BLOS) with additional waste requiring special bags or tags. Unlimited recycling is also part of the system, apparently free but actually imbedded in the fixed costs. Base level of service disposal costs are billed annually as a special non-ad valorem line item on the tax bill; disposal costs for additional bags are included in the cost of the bag. Implementation would involve a gradual decrease in the level of service over a five year period with intensive public education ar~l~nformation. The Combination system is very similar to the existing system because it provides a base level of service and most existing cans and containers can be used. It has the advantage of gradual implementation which can serve to overcome public resistance. ¢ GENERAL FINDINGS RECYCLING AND RECYCLABLES: The Task Force agreed that any change in the disposal rate system should provide a direct relationship between use and cost and should encourage the "3 R's:" Waste Reduction, Reuse and Recycling. It was also agreed that in addition to encouraging the public to "do its part," government should help to expand markets for recyclable materials by purchasing recycled products whenever poss~le and reasonable. Furthermore, the Task Force agreed that the commercial sector, a substantial contributor to the waste stream, should be encouraged by SWA programs to increase recycling efforts. PUBLIC EDUCATION AND INFORMATION: Regardless of the system chosen for implementation, public information and education is essential. The SWA Governing Board must adequately fund a public information program, and the SWA must implement it as quickly as possible if any system is to succeed. ILLEGAL DUMPING: While illegal dumping exists to some extent now, the Task Force concluded that the disposal rate system will cause an Increase In this activity. To the extent possible, illegal dumping should be carefully monitored and if a problem becomes apparent, a Task Force should be appointed to address it. PILOT PROGRAMS: If any system other than that recommended by the Task Force is adopted, one or more carefully designed, controlled and monitored pilot programs are suggested. Because the recommended system involves gradual transition over a period of five years, pilot programs are not necessary. EXISTING CONTRACTS AND FRANCHISES: Depending upon the speed with which implementation of changes is pursued, existing contracts and franchises may require re-negotiation. SYSTEMS - SPECIFIC FINDINGS SPLIT ASSESSMENT: The Task Force concluded that the Split Assessment should not be adopted because it will require time and money to design, staff and implement billing systems. Given current economic conditions there is little likelihood of political support for, or public acceptance of, increasing taxes to fund additional staff for the purpose of implementing a Split Assessment. Additionally, it was felt that the Split Assessment creates an education, information and public relations problem at all levels. The Task Force recommendation is a system wherein the assessment need not be split, however if the Governing Board should choose not to follow this recommendation and instead adopts the split, the Solid Waste Authority should either assume total administrative and financial responsibility for billing, or reimburse the cities for the cost of billing. In either case, planning and public information should precede any change in the current method of billing. SUBSCRIPTION SYSTEM (WITH SPLIT ASSESSMENT) Under this system, the customer would subscribe to a level of service involving two (2) variables: container size and frequency of collection. Yard waste collection would be additional and bulk collection would be handled on a sticker basis. Unlimited recycling is provided, apparently free, but actually embedded in the fixed costs. Fixed costs are billed annually as a special non-ad valorem line item on the tax bill. Concerns and' Findings: Although this system affords the customer the greatest degree of choice and control, it is also potentially the most confusing to the public and the most complex in terms of administration and billing. It also requires significant hauler monitoring to determine whethe.? the garbage set out for collection matches the subscription level. Finally, certain cities mcy not be able to participate due to existing automated equipment with fixed container sizes. The Task Force does not recommend this system for implementation. BAG/TAG SYSTEM (WITH SPLIT ASSESSMENT) This syStem requires the resident to pumhase one type of bag for garbage, one for recyclables, another type of bag for yard waste, and tags for bulk trash. Unlimited recycling is also provided at a reduced cost, but actually embedded in the fixed costs. Fixed costs are billed annually as a special non-ad valorem line item on the tax bill. Concerns and Findings: While this system is probably less confusing than the subscription system, bagging certain types of waste and tagging others can also generate confusion. This system is also somewhat less convenient than other systems in that special bags and tags are needed. Additionally, distribution points for bags and tags must be carefully chosen to maximize convenience and minimize administrative costs. Although no change in hauling equipment is needed in order to implement this system, monitoring by the hauler is required and haulers collecting with automated equipment may not be able to monitor to the desired extent. Finally, residential credits become complicated and perhaps inequitable in that they can only be tracked by bag sale district. COMBINATION SYSTEM (WITH SPLIT ASSESSMENT) This system provides the customer with a base level of garbage service with additional waste requiring special bags or tags. Unlimited recycling is also part of the system, apparently free but actually embedded in the fixed costs. Fixed costs are billed annually as a special non-ad valorem line item on the tax bill and variable costs of disposal are covered by the cost of additional bags. Concems and Findings: The combination system is very similar to the existing system because it provides a Base Level of Service (BLOS) and existing cans and containers can be used. It will require monitoring on the part of the hauler. WEIGHT-BASED This system requires the hauler to weigh the garbage, and bulk waste set out for collection by each customer. Customers "pay-by-the-pound" with the cost of "free" recycling embedded in the cost-per-pound of garbage. Concerns and Findings: While the weight-based system is the most equitable, it is also potentially the most expensive to implement. Current estimates of the cost of retro-fitting existing trucks are in the range of +/- $17,000 per vehicle exclusive of on-board computer technology and personnel training. The Task Force acknowledges that the required technology may become more affordable in the future, but does not under the current economic conditions find the system feasible ~or implementation. GOAL-BASED APPROACH TO PLANNING This approach is not itself a system but rather a planning tool that allows each city to work with the SWA to establish a five year plan with specific goals for waste reduction and recycling. The city and SWA would develop a plan to meet those goals and monitor the results. If at the end of the five year period, the goals are not met, the SWA, working with the cities, will develop an alternative system. Concerns and Findings: While planning is an important aspect of any program, the Task Force was concerned that this approach could lead to 38 different programs and an administrative burden on the SWA. MULTI-FAMILY CONTAINERIZED SERVICE While multi-family containerized service is similar to commercial service in that collection fees are based on the volume 'of waste which could be placed in a dumpster or other large container, there is no direct relationship between the amount of waste generated by each household and the fee paid for disposal of that waste. The Task Force agreed that if a volume-based system were to be implemented for the residential waste stream, and multi-family containerized customers create 20-25% of the waste stream, some effort should be made to extend the system to these users. The Task Force concluded that another committee or entity with a process for public participation should thoroughly explore issues such as container sizes and recycling for multi-family service. SOLID WASTE AUTHORITY OF PALM BEACH COL~TY 7501 North Jog Road West Palm Beach, Florida 33412 Telcphone (407) 640-4000 January 28, 1992 Honorable Mayor: The following information is being provided to you, at this time, so that you will be aware of a potential change in the Authority's billing system that, if implemented, would have a budgetary impact on the cities for fiscal year 1992-93: The Authority Board has created a task force, comprised of individuals representing a cross section of interests to study the feasibility of a volume based system of rates (VBS) for residential rate payers. Such a system, if implemented, would provide residential rate payers the same opportunities as are presently enjoyed by commercial rate payers who now pay approximately a 58% base rate disposal assessment with the balance of their individual disposal needs paid for in the form of tipping fees. In order to provide the opportunity 'for a volume based disposal system to be implemented it is first necessary to split the disposal assessment for residential rate payer in the same manner as is presently done for commercial rate payers. However, it must be understood that splitting the disposal assessment for residential ratepayers does not, by itself, cause a VBS to be implemented, it merely creates the opportunity for a VBS to be established, if desired, by the community. If the Authority elects to implement a split disposal assessment for all rate payers the net effect upon municipalities would be the need to collect the tipping portion of the total rate from residential customers as is currently done for commercial customers. Tipping fees would be set based upon the balance of required revenues after deducting the special assessment revenues from the total. A split assessment must cover certain fixed non-variable costs but at least the debt service requirements which would approximate 50% of present total costs. Recycled Paper Page 2 As a point of reference, if a split system had been implemented for the current fiscal year with the assessment set at the minimum the cities would have needed sufficient revenues to cover approximately 80% of the tipping fees paid for residential waste during the fiscal year ended 9/30/90. The task force charged with the investigative effort to determine the feasibility of this endeavor has been directed topresent a final report of their findings to the SWA Board at the March 18, 1992 meeting. A status report will be included on the February 19, 1992 agenda. We encourage the municipalities to stay abreast of this activity considering the potential for budgetary impact. A list of the task force members has been attached hereto for your information. The task force meets every Monday at 9:00 a.m. in the conference room of the Clayton Hutchinson Agricultural Center, 559 N. Military Trail, West Palm Beach, Florida. Sincerely, Charles E. Maccarrone, Director Financial Management Services CEM:TBM Attachment cc: SWA Board CAC Members Timothy F. Hunt, Jr. Donald L. Lockhart Kathy Kelley Kathy Duzan Municipal Officials: City Manager Town Clerk Finance Director Jack Horniman, Municipal League James Adams, Esq. Bernard Conko, Esq. SPLIT ASSESSMENT/VOLUME BASE TASK FORCE TENTATIVE MEMBERSHIP/ATTENDEE LIST Committee Members: (Phone No.) (Fax No.) Carole Phillips, Solid Waste Authority Board (407) 355-2205 (407) 355-3990 . Harold Ostrow, CAC (407) 495-2230 No Fax No. Catherine Dwore, Sierra Club, Chairperson (407) 624-9032 (407) 624-9032 Judy Passett, City of Boca Raton (407) 393-7884 (407) 393-7843 A1 Dusey, Town of Palm Beach (407) 838-5400 (407) 835-4688 Bill Underwood, City of Belle Glade (407) 996-0100 (407)992-9619 Jeannie Gerard, Audubon Society (407) 965-1390 No Fax No. Linda Erbacher, City of Palm Beach Gardens (407) 775-8255 (407) 775-8244 Michael Kalland, Business Community (407) 687-2400 (407) 687-8750 Bob Bergen, Palm Beach Community College (407) 625-2350 (407) 626-6723 Charlie Roads, Palm Beach County Public Health Department (407) 355-3023 (407) 355-2442 Deborah Manzo, Town Clerk, Juno Beach (407) 626-1122 (407) 775-0812 Jeff Koons, City of West Palm Beach (407) 848-1004 (407) 863-6451 SWA Support Staff: (407) 640-4000 (407)683-4067 Charles Maccarrone, Director of Financial Management Services Kathleen E. Kelley, Director of Recycling, Contract Management and Public Affairs Kathy Duzan, Assistant Director of Operations Contract Management Pat Franklin, Intergovernmental/Franchise Manager Andra Pierro, Assistant Director of Customer Service Dan Pellowitz, Cost Accountant Linda Hodgkins, Public Aft'airs Administrator Resource: Dr. Grace Johns, Principal Economist, Hazen and Sawyer (305) 987-0066 (305) 987-2949 Other Interested Attendees: David Farber, City of Greenacres (407) 642-2071 (407) 642-2004 Dick Holliday, City of West Palm Beach (407) 659-8047 (407) 659-8039 Steve Hiney, City of Delray Beach (407) 243-7127 (407)243-3774 Jody Rutherford, Village of Royal Palm Beach (407) 790-5122 (407)790-5174 Jeff Lis, Catalfumo (407) 471-0338 (407)471-1201 Dale Smith, Economic Council (407) 684-1551 (407) 689-7346 Hugo Unruh, Business Community (407) 835-8505 (407) 659-6711 Jack Horniman, Municipal League (407) 655-8751