Item P1County of Monroe
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BOARD OF COUNTY COMMISSIONERS
Mayor George Neugent, District 2
The Florida. Key
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Mayor Pro Tem David Rice, District 4
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Danny L. Kolhage, District 1
Heather Carruthers, District 3
Sylvia J. Murphy, District 5
County Commission Meeting
January 18, 2017
Agenda Item Number: P.1
Agenda Item Summary #2583
BULK ITEM: No DEPARTMENT: Solid Waste
TIME APPROXIMATE: STAFF CONTACT: Will Thompson (305) 292 -4432
2:30 PM
AGENDA ITEM WORDING: Discussion and Direction for Changes to the Specialty Hauler
Program.
ITEM BACKGROUND: In previous discussions the BOCC directed staff to consult with the
specialty haulers and recommend revisions to the program which would secure a revenue stream
equal to what the program should be receiving while eliminating the enforcement problems inherent
in the self - reporting system currently in effect. Staff has reviewed options to eliminate the reporting
requirement while maintaining the revenue stream. Several options will be presented for BOCC
consideration. After the discussion, staff will prepare a recommendation for changes and initiate
modifications required to Chapter 21 of the Monroe County code to implement the options selected.
Among the options are changes to the basic license fees, additional to the licenses required, and
alternative sources of revenues to support the program. The objective is to implement the revised
program for FYI effective October 1, 2017.
PREVIOUS RELEVANT BOCC ACTION: At the October 19, 2016 meeting, BOCC directed
staff to work with the specialty haulers to develop a revised program to eliminate the "honor system
reporting while ensuring the new system captured the revenue stream that was intended by the
existing system.
CONTRACT /AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: N/A
DOCUMENTATION:
2017 -01 -18 Specialty hauler discussion
SH Key Issues
FINANCIAL IMPACT:
Effective Date: N/A
Expiration Date: N/A
Total Dollar Value of Contract: N/A
Total Cost to County: None
Current Year Portion: N/A
Budgeted: N/A
Source of Funds: N/A
CPI:
Indirect Costs: Staff time
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing:
Grant: N/A
County Match: N/A
Insurance Required:
Additional Details:
N/A If yes, amount:
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h]X TA1 IH17."
Will Thompson
Completed
01/09/2017 4:08 PM
Kevin Wilson
Completed
01/09/2017 4:21 PM
Christine Limbert
Completed
01/10/2017 1:59 PM
Budget and Finance
Completed
01/10/2017 3:07 PM
Maria Slavik
Completed
01/10/2017 4:43 PM
Kathy Peters
Completed
01/17/2017 9:45 AM
Board of County Commissioners
Completed
01/18/2017 9:00 AM
Key Issues:
1. Enforcement of reporting is problematic.
2. The BOCC directed that changes to the program should aim to capture the revenues that
the program should be realizing.
3. Original intent of the program was to fund Pollution Control (picking up illegal
dumping).
4. What is "fair" way to fund Pollution Control?
5. How to eliminate "gypsy" collectors?
Today the specialty hauler program revenue is approximately $212,000 /year comprised of
$55,500 in basic fees and $156,500 in royalties from reported sales.
As sludge hauling becomes a minor portion of the program due to expansion of central sewer
systems, without any changes in the program this revenue will drop to $163,000 comprised of
$30,000 in basic fees and $133,000 in reported sales (assuming no change in reporting
enforcement).
Options for revenue:
1. Enforce reporting requirement
a. Requires added staff and
b. Records access
c. Only increases costs and overhead
2. Increase fees
a. Increase specialty fees
i. No hauler has more than one non - sludge specialty
ii. Half of haulers are sludge only
iii. Many sludge haulers bring everything to County transfer stations
iv. Increasing sludge fee increases costs of sewer connections
b. Increase per truck fee to $1,000 but leave other fees unchanged
i. increases revenue by $53,000 now but only $36,000 in future
ii. captures large haulers
iii. disadvantages sludge haulers
c. Increase specialty fees to $2,500 but leave sludge haulers at $1,000
i. Increases revenue now & in the future by $27,000
ii. Leaves sludge haulers as they are now
d. Increase non - sludge fee to $2,500 and per truck fee to $1,000
i. Sludge haulers experience some increase (per truck)
ii. Increases fees by $80,000 now and $63,000 in future
e. None of the above makes up for $133,000 in lost reporting revenue
3. Add new fees e.g. add a per transfer station fee
a. Each $10,000 increases revenue by $50,000
b. Captures specialty hauling that is brought to the transfer station
c. Is additive to increased fees (2 above) both now and in future
i. With 2b — total increase is $103,000 now and $86,000 in future
ii. With 2c — increase is $77,000
iii. With 2d — increase is $130,000 now and $113,000 in future
iv. None of the above fully replaces the lost reporting revenue
4. Expand sources of funding
a. Increase commercial disposal charges
i. For each 1% increase the increased revenue is $53,000
ii. Charges are adjusted for CPI per contract
iii. Increase of 5% is sufficient to leave all license fees as they are today
iv. Cost of a 5% increase for
1. Small customer 6YD /lx /week = $138 /year ($2.65 /week)
2. Larger customer 4 YD /4x /week = $369 /year ($7.10 /week)
Options for Enforcement:
1. Reporting
a. Add staff — not recommended
b. Eliminate reporting and increase fees and add penalties (2 -3 times fees)
2. Gypsy Haulers
a. Increase staff — not recommended — ineffective
b. Add scavenger provision and use unlicensed penalty as fine