Item J1BOARD OF COUNTY COMMISSIONERS
County of Monroe A
Mayor Heather Carruthers, District 3
( T$ne Florida Keys (, Mayor Pro Tem George Neugent, District 2
t� ) ��` ��
�' Danny L. Kolhage, District 1
David Rice, District 4
Sylvia J. Murphy, District 5
County Commission Meeting
October 19, 2016
Agenda Item Number: J.1
Agenda Item Summary #2199
BULK ITEM: No DEPARTMENT: Solid Waste
TIME APPROXIMATE: STAFF CONTACT: Will Thompson (305) 292-4432
yes
AGENDA ITEM WORDING: Discussion and direction on potential changes to the Specialty
Hauler Program
ITEM BACKGROUND: See attached memo
PREVIOUS RELEVANT BOCC ACTION: N/A
CONTRACT/AGREEMENT CHANGES:
Discussion
STAFF RECOMMENDATION:
DOCUMENTATION:
Hauler proposal
proposed timeline
FINANCIAL IMPACT:
Effective Date: N/A
Expiration Date: N/A
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match:
Insurance Required:
Additional Details:
REVIEWED BY:
Will Thompson
Completed
10/03/2016 4:31 PM
Christine Limbert
Completed
10/04/2016 10:09 AM
Budget and Finance
Completed
10/04/2016 10:33 AM
Maria Slavik
Completed
10/04/2016 10:36 AM
Kathy Peters
Completed
10/04/2016 11:01 AM
Board of County Commissioners
Pending
10/19/2016 9:00 AM
County of Monroe
Tie Florida Keys
��rFsti
Memorandum
DATE: October 3, 2016
BOARD OF COUNTY COMMISSIONERS
Mayor Heather Carruthers, District 3
Mayor Pro Tem George Neugent, District 2
Danny L. Kolhage, District 1
David Rice, District 4
Sylvia J. Murphy, District 5
TO: BOCC CC: Administrator, Assistant Administrator
FROM: W. Thompson
SUBJECT: Specialty Hauler Program in Monroe County
Proposed Action: Develop a new specialty hauler licensing system that eliminates the onerous
and difficult to enforce system of reporting, is fair to all, and shares the costs of illegal dumping
enforcement fairly.
Background:
The Specialty Hauler program in Monroe County was originally developed as a way to fund the
pollution control and illegal dumping cleanup efforts in the County. Its enforcement mechanism
relies on self -reporting and no funding was allocated for any enforcement. This has left it open to
abuse by haulers in underreporting revenue, and by out of County companies operating within the
County that had no reason to know the program even existed. No other County in the State of
Florida has a similar program. It also has placed the burden of paying for the County's pollution
control efforts on 30 to 40 businesses, rather than spreading the expense more fairly as a shared
social responsibility.
Options:
In the interest of starting a conversation on a path to reforming the program, here are some options
for consideration:
1. Eliminate the revenue sharinLy element of the DroLyram and instead charLye haulers a flat
rate.
Currently, Haulers are required to return to the County 10% of their gross revenue for hauling
material in the County. Under reporting of revenue is widespread. For example, one hauler reports
on average around $60,000.00 in revenue a month, and sends the County around $6000.00. This
particular company has 15 trucks operating and registered with the County. It seems unlikely that
they could operate 15 trucks with drivers and all associated cost on gross revenue of $60,000.00
per month. Although the County has the right to audit the records of any Company in the Specialty
Hauler program, to do so requires additional staff. By switching to a flat rate system, we eliminate
revenue sharing, and the possibility (or temptation) of under reporting. The program revenue is
currently approximately $200,000.00 per. One option is to divide the $200,000.00 in revenue by
the total number of licensed haulers. This would be a flat rate to remain revenue neutral.
2. Alternatively, the County could establish a standard flat rate per truck operated in the
County and shift some of the cost of pollution control to commercial solid waste disposal
rates. Pa
This places the cost of the County's Pollution Control program entirely on County businesses.
This may be unfair. All residents benefit from controlling illegal dumping. Perhaps the group that
benefits the most from a clean environment in the Keys is the business community. Monroe
County's tourist based economy is driven by the environment we all enjoy. So it is logical that the
business community contribute to the effort to help control illegal dumping. The County receives,
on average, more than $400,000.00 per month in commercial solid waste disposal fees. This pays
for the County's haul out service. The County also receives approximately $200,000.00 per year
($16.7k/month) from the Specialty Hauler program. A small increase in the disposal fees charged
to commercial accounts, (2 or 3 percent) would easily replace the revenue currently being realized
by the hauler program, and spread the costs of pollution control more fairly to the community most
benefitting from the County's efforts. The County would still charge each hauler a fee per truck
(e.g. $1000.00) operating in the County as a means of offsetting administrative costs, but eliminate
the revenue sharing aspect of the program.
3. Change nothing and stringently enforcement of the current ordinance.
The primary issue around the Specialty Hauler program is its lack of any effective enforcement
mechanism. While operating without a County license can be prosecuted criminally as a
>%
misdemeanor, it is generally prosecuted through the code compliance department. This leaves
enforcement to the Code Compliance department. Code Compliance is required to actually witness
a
illegal hauling before they can cite a violator, and even then, the penalties are minor, and are
0
considered a cost of doing business by some companies. Considering the size and geography of
U)
Monroe County, the probability of a Code Officer/Deputy actually witnessing illegal hauling are
quite low. Since the Specialty Hauler program's inception in the early 1990's, there have been few
successful code actions taken against haulers operating without a license, both within the last
several months. Both of the cases were resolved with no fines being levied and no further action to
r-
be taken. With the County's limited ability to audit a Hauler's financial records, proving a
U)
violation is difficult. Even if a company was proved to be under reporting, the County has limited
options to require the proper amount be paid. It would appear the only County recourse would be
to rescind the license and file a lawsuit to attempt to collect the funds. The cost of litigation would
likely exceed the fees due.
This more stringent enforcement would require an increased staff including a full time person in
the Solid Waste Department to audit the records of all Specialty Haulers, as well as at least one
Code Enforcement Officer dedicated to monitoring hauler activities on the 124 miles of US and
a
thousands of miles of County and city roads within Monroe County.
a
Of the above options, option 2 is the most practical approach. It eliminates many of the
enforcement issues the program has experienced, and more fairly spreads the cost of the pollution
control program.
_
Specialty Haulers Ordinance
Proposed Revision Timeline
October 4, 2016: Submit agenda item for Discussion item
October 19, 2016: Discuss possible specialty hauler ordinance changes at BOCC meeting. Present several
(2 or 3) options and the effects of revenue and why we would consider. Objective is BOCC direction on
guidelines for final proposal.
Late October thru 7 NOV- - develop staff recommended plan October 24 — November 7 2016: Meet
with individual commissioners to discuss specialty hauler ordinance changes I" review
7 November - agenda deadline for recommend plan approval and direction to modify ordinance. This
should include a recommendation for the transition plan (effective date; prorating the fee for FY17).
November 22, 2016: Approve proposal at BOCC Meeting
December 2017 or January 2017 BOCC meeting: Approval to advertise changes and public meeting
Develop the transition plan to implement new program.
February 2017 BOCC meeting: Hold public meeting (this is the approval of the new ordinance (we may
need a resolution on effective date and how to transition)
March 2017: BOCC vote on proposal
Monroe County
Board of County
Commissione
eeting
Specialty Hauler
Discussion & Direction
tool-2004
2012
2013
Background
Established solid waste a:
Established hauler licensing
Added license fee & io% fee
Variations of to what io% fee applied
Clarified io% fee applied to gross
receipts (sales)
Added enforcement by Administrator
Background
Ordinance Requires:
i. Basic License for each specialty
Z. Decal & fee for each truck used
3. Report gross revenues and pay io%
unless material is delivered to County
transfer station
County Revenue (FY15) $212,000
Background
29 "Specialty" Haulers (includes 3 Franchisees)
13 Sludge only
6 C&D only
9 Two "specialties"
1 Metal only
5 operate transfer stations (FDEP licensed)
mwOfthe2q:
- 14 do not report any gross revenues
- 4 report gross receipts under $iok
3 report sales $lok - $zok
- 6 report sales $2ok - $gook
- 2 report sales over $look
Background
Of those 15 reporting (# of private transfer stations):
- 6 report sales under siok/truck(i)
- 4 report sales $iok - $zok/truck (z)
- 4 report sales $zok - $iook/truck(i)
i reports sales over siook/truck(i)
Issues
�. Eliminate "honor system" reporting?
a. Or audit? Or add staff
b. Eliminates temptation to under report
z. Aim to be revenue neutral with current? or with
what we think it would be?
3. Implement fixed fees?
a. Include license fees for operating private transfer
4•
stations?
b. Include only per license? Only per truck?
Exempt franchisees from Licensing fee(s)?
Example of Options
i. Fixed price for each specialty
a. $7,5Q0 for ist
b. $5,000 for each subsequent specialty
z. Fixed price for each truck - $2,500/truck
3. Add transfer station licensing - $io,000/station
(needs legal review)
HAULER
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
# of # of Sl
cialties
1
1
2
1
2
1
1
2
2
1
1
1
1
2
_ 2
1
1
~. 2
1
1
2
1
1
1
1
1
1
2
$7,500.00 1st Specialty license
$5,000.00 2nd Specialty license
$2,500.001 per truck decal
0
0
0
0
Example
# of truck
# of Transfer
Total Pd
decals
Stations
FY16
2
$1,774.40
3
$8, 062.56
2
$1,500.00
1
$1,500.00
3 1
$6,144.50
1
$1,250.00
1
$1,250.00
2
$1, 868.01
16
$40,063.05
_1
1
$1,500.00
1
$1, 964.75
1
$10,149.53
1 1
$1,250.00
_
_
1
$1,500.00
1
$1,500.00
2 1
$4,465.60
3
$6,708.00
3
$k
2
$2,676.70
3
$ 2, 621.92
4
$1, 750.00
1
$1,795.50
1
$1,250.00
1
$8, 281.61
2
$1,500.00
3 $2,000.00
►j
$3,082.
2017
(FY18 and beyond)(assumes Sludge goes away)
otal
Diff from FY16
Total
Diff from FY16
Diff from FY17
S12,500.00
10,725.60
S0.00
(1,774.40)
(12,500.00)
$15,000.00
6,937.44
$0.00
(8,062.56)
(15,000.00)
$17, 500.00
16, 000.00
$12,500.00
11, 000.00
(5,000.00)
$10,000.00
8,500.00
$0.00
(1,500.00)
(10,000.00)
$30,000.00
23,855.50
$25,000.00
18,855.50
(5,000.00)
$10,000.00
8,750.00
$0.00
(1,250.00)
(10,000.00)
$10,000.00
8,750.00
$0.00
(1,250.00)
(10, 000.00)
S17,500.00
15,631.99
$12,500.00
10,631.99
(5,000.00)
S62,500.00
22,436.95
$57,500.00
17,436.95
(5,000.00)
$10,000.00
8,500.00
$10,000.00
8,500.00
0.00
$10,000.00
8,035.25
$0.00
(1,964.75)
(10,000.00)
$10,000.00
(149.53)
50.00
(10,149.53)
(10,000.00)
$ 20, 000.00
18, 750.00
$ 20, 000.00
18, 750.00
0.00
$15,000.00
13, 500.00
$17, 500.00
16,000.00 ;
Y °, , 500.00
$15,000.00
13,500.00
$17,500.00
16,000.00 ,500.00
18,034.40 0.00
522,500.00
18,034.40
$22,500.00
$15,000.00
8,292.00
$15,000.00
8,292.00
0.00
$20,000.00
18,500.00
$15,000.00
13,500.00
$12,500.00
9,823.30
$12,500.
$15,000.00
12,378.08
$0.
$ 22, 500.00
20, 750.00
$17, 500.
$10,000.00
8,204.50
$10, 000.
$10,000.00
8,750.00
$0.
$10,000.00
1,718.39
$a
$12,500.00
11, 000.00
$0.
$15,000.00
13,000.00
$0.
$12,500.001
$�O0.
11, 000.00
(56,603.94)
$0.
$30,000.
$
6,917.50
$10, 000.
PF
$487, 500.00
275, 487.43
Total
Diff from FY16 ',otal
9,823.30
(2,621.92)
15,750.00
8, 204.50
(1,250.00)
(8,281.61)
(1,500.00)
(2,000.00)
(1,500.00)
61, 603.94)
6,917.50
92, 987.43
from FY16
1 Ii
M
(10,000.00)
(182, 500.
F from FY
Example of Option
1. Fixed price for each specialty
a. $7,500 for tst
b. $5,000 for each subsequent specialty
z. Fixed price for each truck- $2,500/tru
3. Add transfer station licensing - $110,oc
(needs legal review)
4. Exempt franchisees from Licensing fee(s)?
V MY MY V we
Example
HAULER
# of
# of Sludge
# of truck
# of Transfer
Total Pd
2017
(FY18 and beyond)(assumes Sludge goes away)
Specialties
decals
Stations
FY16
Total
Diff from FY16
Total
Diff from FY16
Diff from FY17
1
1
1
2
$1,774.40
$12,500.00
10,725.60
$0.00
(1,774.40)
(12,500.00)
2
1
1
3
$8,062.56
$15,000.00
6,937.44
50.00
(8,06256)
(15,000.00)
3
2
1
2
$1,500.00
$17,500.00
16, 000.00
$12, 500.00
11, 000.00
(5,000.00)
4
1
1
1
$1,500.00
$10,000.00
8,500.00
$0.00
:500.00)
(10,000.00)
5
2
1
3
1
$6,144.50
$30,000.00
23,855.50
$25,000.00
18,855.50
(5,000.00)
6
1
1
1
$1,250.00
$10,000.00
8,750.00
$0.00
(1,250,00)
(10,000.00)
7
1
1
1
$1,250.00
$10,000.00
8,750.00
$0.00
(1,250.00)
jijgWjjjjM
8
2
1
2
$1,868.01
$17,500.00
15,631.99
$12,500.00
10,631.99
(5,000.00)
9
2
1
16
1
$40,063.05
$62,500.00
22,436.95
557,500.00
17,436.95
(5,000.00)
10
1
0
1
$1,500.001
$10,000.00
8,500.00
$10,000.00
8,500.00
11
1
1
1
$1,964.75
$10,000.00
8,035.25
$0.00
(1,964.75)
(10,000.00)
12
1
1
1
$10,149.53
$10,000.00
(149.53)
S0.00
(10,149.53)
(10,00a00)
13
1
0
1
1
$1,250.00
$ 20, 000.00
18, 750.00
$ 20, 000.00
18, 750.00
0.00
14
2
0
1
$1,500.00
5 9 S nnn n0
$0.00
13, 500. 00
$17,500.00
16, 000.00
2,500.00
15
2
0
1
$1,500.00
(1,500.00)
$0.00
(1,500.00)
0.00
16
1
0
2
1
$4,465.60
$22,500.001
18,034.40
$22,500.00
18,034.40
0.00
17
1
0
3
$6, 708.00
<' nnn nol
8,292.00
$15, 000.00
8,292.00
0.00
�.
18
2
1
3
$1,500.00
$0.00
(1,500.00)
$0.00
(1,500.00)
0.00
19
1
0
2
$2,676.70
$12,500.00
9,823.30
$12,500.00
9,823.30
0.00
20
1
1
3
$2,621.92'
$15,000.00
12,378.08
$0.00
(2,621.92)
(15,000.00)
21
2
1
4
$1,750.00
$22,500.00
20,750.00
$17,500.00
15,750.
8,204.501
0.00
22
1
0
1
$1,195. 50
$10,000.00
8,204.50
$10,000.00
23
1
1
1
$10,000.001
8,750.00
$0.00
(8,281.61)
(10,000.00)
24
1
1
1
$8,281.61
$10,000.00
1,718.39
$0.00
25
1
1
2
$1,500.00
=
$12,500.00
11, 000.00
$0.00
(1,500.00)
12, 5 .
26
1
1
3
$ 2, 000.00
$15, 000. 00
13, 000. 00
$0, 00
(2,000.00)
(15, 000.00)
27
1
1
2
$1,500.00
$0.00
(91, 603.94)
$30, 000.00
28
2
1
5
1
$ 91, 603.94
(61, 603.94)
30, 000.00
29
1
0
$3,082.50
$10,000.001
6,917.50
$10,000.00
6,917.50
0.00
$7,500.00
lst Specialty license
��JJJJJPWIIF 1$212,012.571 $417,500.00
�� Total
$5,000.00
2nd Specialty license
205,487.43 60,487.43
Y17
om 16 Total Diff from FY16 Diff from F f
$2,500.00
per truck decal
p
$10,000.00
per transfer station
Next Steps
1. Direction today
z. Staff develops options and effects
3,, Review proposal with haulers
4. Review Proposal at BOCC
5. Revise Ordinance (Chapter 21 MCC)
Questions
Or
Discussion