Item Q06
t.
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: Wednesday. June 16.2004
Division: BOCC
Bulk Item: Yes
No XX
Department: Commissioner Rice. District 4
AGENDA ITEM WORDING: Discussion of City of Marathon solid waste issues.
ITEM BACKGROUND: The City of Marathon incurred expenses for solid waste fees for the
period of June 2003 through October 1, 2003, at which time legal operational responsibility for
solid waste services within the City of Marathon was officially transferred back to the County.
The new franchise agreement between the County and Marathon Garbage Service is still under
negotiations.
PREVIOUS RELEVANT BOCC ACTION: The BOCC has developed a policy that all residents
participating in the County Solid Waste Collection program would be treated equitably,
meaning that the County will not charge one area more than another, or require one area to
subsidize the solid waste fees generated by another area.
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATIONS:
TOTAL COST:
BUDGETED: Yes
No
COST TO COUNTY:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH_ Year
APPROVED BY: County Atty _
OMB/Purchasing _ Risk Management_
Qflf4~ ~~
(David P. Rice, Commissioner, District 4)
DIVISION DIRECTOR APPROVAL:
DOCUMENTATION:
DISPOSITION:
Included XX To Follow_ Not Required_
AGENDA ITEM #~
Revised 1/03
CITY OF MARATHON, FLORIDA
10045-55 Overseas Highway, Marathon, Florida 33050
Phone: (305) 289-4130 Fax: (305) 743-3667
www.marathonflorida.org
April 21, 2004
APR 2 3 (OO~,
Commissioner Rice
9400 Overseas Hwy., #210
Marathon Airport Terminal
Marathon, FL 33050
Dear Commissioner Rice:
I'd like to thank you for organizing a meeting between the City of Marathon and Monroe
County to discuss the issues surrounding solid waste payments. As I think you know, we
have all been working on this for over a year. As a result of our meeting on Monday,
April 19, 2004, I have discussed a possible settlement informally with each member of the
City Council. As a result of my discussions, I feel comfortable offering the County a cash
payment of $270,720.84 to resolve our differences.
I would also like to ask you once again to support an Interlocal Agreement between the
City of Marathon, Monroe County and Marathon Garbage Service as you move fOIWard
with a long term relationship for solid waste services here in Marathon. A three party
Interlocal Agreement is the only way to insure a long term relationship. The Draft
Interlocal Agreement I sent to you can be amended to satisfy the County's concerns
regarding past solid waste costs. However, the agreement should include a 3% franchise
fee for the City of Marathon. Marathon Garbage Service is perhaps the heaviest normal
traffic using City roads. It is normal for a City to receive a franchise fee from solid waste
companies to help compensate the City for the costs of road maintenance and repairs.
Again, thank you for calling us all together to discuss this issue. I hope we can resolve it
soon. Please let me know if you have any suggestions regarding either our offer or the
Draft Interlocal Agreement.
Sincerely,
~~~
W. Scott Janke
City Manager
MEMORANDUM
TO:
Commissioner David Rice
r.
FROM: James L. Roberts
County Administrator
DATE: April 8, 2004
SUBJECT: Marathon Solid Waste Bills
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As you requested, I am enclosing the infonnation concerning billing for the City of
Marathon for solid waste services at the County's franchise station. The billings cover the
months of services and the months of June, 2003 through October, 2003. The bills are as
follows:
Billing Date
6/30/03
7/301/03
8/301/03
9/30/03
Amount
$136,022.84
133,222.44
138,965.04
133,225.84
In addition, there are summary statements indicating a balance brought forward dated
October 31, 2003 of $541,436.15. That is repeated in an additional statement submitted to
the City dated November 30, 2003 and one dated December 31, 2003. There is another
statement dated January 31, 2004 and one dated February 29, 2004 and one dated March 31,
2004. Some minor adjustments of just a few dollars over that period result in $541,441.68
owed.
-=s:;:~D~ ~
James L. Roberts
County Administrator
JLR: dlf
Ene.
Cc: Board of County Commissioners
Reggie Paros, Public Safety Director
John R. Collins, County Attorney
Apr 07 04 11:52a
t
James L Roberts Co Admin 305-292-4544
p. 1
,"" ,
Monroe County
Board or County Commissionl:m:,
01ftce of the County Administrator
The Historic Gato Cigar Factory
1100 Simonton Street, Suite 205
Key West, FL 3304&
(305) 292-4441-P.hoDe
(30S) 292-4544 - Fax
(..''"-
BOARD OF ~NTY mMMlMJONERs
Mayor Murray . Nelson, District 5
Mayor Pro Tern David P. Rite, DIstrict 4
Dixie M Spehar, DIstrfd: 1
George Neugent, District 2
ChIdes "Sonny- McCoy. 0Isl:rict 3
OUNTY oLMONROE
KFYWEST ~ 't:.0Rl0A33040
1305l'l!lM-4841
"P" - ,.,""'nil
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AprilS, 2004
Mr. Scott Janke, City Manager
aty of Marathon
10045-55 Overseas Highway
Marathon, Rorida 33050
Dear Mr. Janke:
On March 24, 2004; you responded to my letter mMardlll, 2Q04, In reference to
the funds owed to the County of Monroe by the City of Marathon for fees for solid waste
services from June, 2003, through October, 2003. That amount totals Over $541,000 and
has been billed monthly ~ the.Oty-of.-~.'S~~ services and the
debt was incurred.
I shan attempt to responcf-to air-me rSSues you fafsecf in your letter. However, a
short history might again be of some assistance. WheAthe all of Maatthon incorporated,
the County was admintstering the.soIId waste program' and was wHttng to continue that
relationship. ThaLmeant the eounty' wauktUJAtlnue~aII biltiAgs ~ provide services
through the efforts of the focal franchisee and the -count(s transfer-station. l11e City
subsequently utillzed--ifs prerogative-and-took-awet thce'oollb..A anc:t~ of the solid
waste program. The County was no longer directly involved except ttlat the CIty, by It's
choice, continued to bring its solid Waste to the County's transfer station. The price
charged by the COUntyI- as & charged on behalf of aIlareasJa tl1e, ())unty utilizing the
transfer station, was and is $92 perton. This cost covered hauI-out of the solid waste and
other expenses.
Marathon attemptectto reviSetfle program.~. asweunderstlnd it, changed the
method of billlno-and 'NaSc~ to, chaRge. the ~ as... It exISted for years
with the franchisee. When Marathon billed reskfellts, it was unable to obtain sufflclent
revenue to operate:tbe. prograraatttasame leveL- ~l F8GlI,~mately two years
ago, the funds owed-toctheCountywere-inttle-netghborhoodof$1.2 mOHon.
Apr 07 04 11:52a
James L Roberts Co Admin 305-292-4544
p.2
for example, it is the COUntyrs undersfandjhg that Marathooreduced the bitlings to
duplexes and mufti-family structures by $-31 per unit per Y6ltr thereI:w creating a lower
revenue stream and. contributing to the problem. In addition, ~arathon paid a private
management company. a. fee tG-ma~the-selid'wa~progtan,-{reputed to be about
$25,000 per year), which also reduced available funds. We ~rstahd that billing and
colfectjon problems-lectttrforttter erosiOn or revenue.
Subsequent to the seating of a new Council, Marathon ~ped a genuinely
cooperative attitude with the County and began paying its arrearS cOVer a number of
months. Ultimately, Marathon came OJffefttwitb.1hLbilIl~ancl;payments and up
through June of 2003 was making payments for the services received. Because of that
level of cooperation, the-~-Commi55icn agweed wittt.the".~ of the Oty of
Marathon once again to manage and operate the softd waste ~m. The County
fulfilled its responsibillttes- ana-on ..0000000f, 2O(B, regafoperational' responsibility was
transferred to the. County. The County. undertook.direct, biDing.. threugfl the Tax Collector
and resumed its former relationship with the franchisee. In fact, bealuse of the changes
made to the solid waste.: lOll: by:. tbe:.aty.,. it..WfIS;-neces6aryfeF-the-f.ot.tFtty to hire a special
oonsultant who restructured the solid waste run in a manner that would be fair and
efficient and reflert aIHhe-User5"" of the solid w~ ..,.ogram-inthe Cll:Yof Marathon. That
Consultanfs cost was $24,954.50 and was not biDed to the City as part of the cost of
assuming the responsi6iIi{fe-oFffie pI'OgIallJ.
From Ju~. ~thtough 0Cf00er r, .2003; .the City of Marattlcyl continued to use
the services of the County's transfer station and. incurred- expense. '(ou are correct, we
have discussed this many times and I -was QUite surprised to see some d the comments in
your Jetter.
first of all, the City ancrCOunty fiave been attempting to wodt tnget:tler on this issue
for Quite some time. Up to. June of 2OO3r- it appeared as though that reIiltionship was quite
solid. There was a meeting with you, me and Mr. Rosasco and we did-biscuss the issue of
unpaid solid waste:.fees-. At-tbat-time;-youc.iAfomtC.us:-that-voo--ha6-pa1d us everything
that you had cotfected for sofid waste and there wasn't any more money to pay the
County. We discussed--a--proposed intertocat agleelllet4 ~ifilh tlatr~ from the City and
I explained to you that agreement placed aU the liability back on the County, induding for
the period during wfiiCfi !fie COunty di:f not have solid waste le5pOAJibifities in the Oty.
Suchan approach wooId.not be~ble to the County.
You did request the lndusion of the franchise fee for the Otv in a franchise
agreement which was, at that time and stiNts todav7 under negotiatiOIlJor renewal. I have
told you that is oo.tne table-during..~. Howe~l.sbaIl~ to my County
Commission with.howthosenegotiations are PtoceediliyTather1han repbrting to you first.
Also, Marathon' has- rt:adtetfan agreement witfi tI'Ie. fOraf fianchIJee to pick up solid
waste at nine (9) Oty owned properties. for freeL with. the stated, ~ to replace the
need for a franchise fee for the City. This is an estimated annuaf benefit to Marathon of
over $60,000.
Apr 07 04 11:53a
Jam~s L Roberts Co Admin 305-202-4544
p.3
I should also pam! out that what you are asking the COOnty ~ do is to place the
cost on your citizens under. the County's name that Marathon was.. unwttling to do when it
had control of the solid waste program. The County agreed to take-over the program for
the purpose-of removing-the--Ctty from .tt:ae ptoblentS thatit-hactencourjered. It seems to
me that if the City would like to. have funds raised that would be, paid back to the aty for
purposes such as maintenance of your roads, t would be ~o.ior the City to levy
that revenoelnsome-fashion father ~ the County do it.
Also, prior to you coming to Marathon, the County. ComrIlissql, In reference to
issues involving the Oty of Marathon solid waste, developed a policy that all people who
:: ~~.theThe~~~~;"=':_~ =:k20~~
more than anot:her and:wookf.F&~ ooe-aree oftherKey5'to-5tlbsigize the solid waste
expenses of another.
As you staUrln your fetter~ theQ)unty ancfffie CIty dO wanl:1D maintain a strong
cooperative relationship. That is why when you and I were speaki~ Mayor Nelson
outside of the meeting room of the Governor and Cabinet just a few ago and the
solid waste iS5UeS::eame-o.up;J.~quite..a!bAdshedto ~yw-.SiPf-~ing to the effect
"I've wiped that obligation off the books.'" I know the 14ayor was qutte surprised to hear
that also. The faef-offhe matter iSth8tthe City ofMalatllUJl \"UIftill~ from June through
October of 2003 to utilize the services of the. County transfer station and has not
compensated the COUnty fOr mat use. EVen tflough you may JlOt jlave any executed
agreements as ~bave.identified; the Oty has,paidthese~expensesJf\, the past and there
is no justification for suddenIv discontirlUing1hepayments. !
I believe it woukt-be important to- retiJmto fryirlg fa sorve tf1eg-oblem rather than
raiSing specious issuesk I am wiUingo.cto,o.take.. tn the. County ~ a reasonable
suggestion of how the funds that are owed can be paid. As fang as ttte COUnty continues
to manage the soIid~9flilem,within tbecCily:..li~ MasathaA statld not be incurring
future expense. Therefore, the satisfaction of the bills that are oWed wouk:J relieve
Marathon of soIkt wasr.e-'lInandiIr ~ Iryouhave a ~I, other than just
having. the County. raise.. the.,mooey..for. ~ please let me know, and, I shall be glad to
evaluate it and provide-arecommendation to~ Q)mmissiOn.
Very truly yours,
~k-. j-~~k
James L. Roberts
q,unty Administrator
JLR:dlf
Cc: Board of Courty Commissioners
Reggie Par~ Public Safety
OK~~1Y ~~~~E
(305) 294-4141
Monroe County
Board of County Commissioners
Office of the County Administrator
The Historic Gato Cigar Factory
1100 Simonton Street, Suite 205
Key West, FL 33040
(305) 292-4441 - Phone
(305) 292-4544 - Fax
March 11, 2004
Mr. Scott Janke, City Manager
City of Marathon
10045-55 Overseas Highway
Marathon, Florida 33050
Dear Mr. Janke:
r~"~
BOARD OF COUNTY COMMISSIONERS
Mayor Murray E. Nelson, DiSbict 5
Mayor Pro Tern David P. Rice, D1Sbict 4
DIxie M Spehar, DiSbict 1
George Neugent, D1Sbict 2
Charles "Sonny"' McCoy, District 3
__ .'1)..,.p:-. .
.~ ~i!": .' -
. .;~~ ~5~ ~.
MAR 1 5 2004
I am again reminding you that the City of Marathon has not paid the County the sum of
$541,441.68 for solid waste services from June, 2003 through October, 2003. These are charges
which have been billed to the City in the past and which cover the period during which the City
conducted its solid waste responsibilities and utilized the COunty'S transfer station.
You and I have had discussions concerning this issue. However, it has been some time since
the County has received any payment in reference to any of the bills owed. Since the County is
beginning its budget process for the forthcoming fiscal year, it is essential that the funds be paid so
that property owners from other parts of the Keys do not have to replace the loss of revenue that has
not been paid by Marathon.
Thank you for your attention to this issue.
JLR:dlf
Cc: Board of County Commissioners
Reggie Paros, Public Safety Director
Danny Kolhage, County Clerk
Richard Collins, County Attorney
Very truly yours,
J~~
James L. Roberts
County Administrator
305-292-4544
p. 1
Oct 10 03 07:58a
James L Roberts Co Admin
O~~3~~E
(30S) 294-*4'
MDnrue CoImty BoIrcI of County COmmiSsIonenl
0IIIat of tt1e County ActrninlstratDr
The Historic Gato agar F8c:tDry
1100 S1mont1On Street, Suite 20S
Key West. Rortda 3J04O
(305) 292-4441 - Phone
(305) 292~ - Fex
r""--
BOARD OF COUIn'Y """..--a-lONERS
Mayor DbcIe M. SpeIIar, Dlstrld: 1
Mayor Pro Tern Murray E. NdIon, DIstrIc:t 5
George Neu;ent. Dlstrk:t 2
Charles "Sonny" ~, Dlstrld: J
Diwld P. RIte, Dlstrk:t 4
.
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1M E M 0 RAN lJ U M
I
To: Scott Janke. Marathon City Manager
From: James L. Roberts. County Administrator
!)Qte: October 9. 2003
Ae: City of Mcnthoft Tlppffte Fees
I'm enclosing a copy of a rnemorGndum I received from Itaff in referenc:& to the billings in the
City of Marathon for tipping fees. Although for many months Mcrcrthon was ctrrent with its payments.
apparently now paytnents ore not being mode.
Please make ~ for payment to be forwarded to the County at the earliest
opportunity. Thank you for your continued cooperation.
JLR:pe
ce: 80ard of Coun;y Commissioners
--../~~
James L Roberts ~
County Administrator
Oct 10 03 07:58a
James L Roberts Co Admin 305-292-4544
p.2
O~~1!'~~~E
(JOSl34~l
(-., ----
BOARD Of COUNTY COMMnr,:QftN~
Mayor DOOe M. Spehar, District 1
Mayor Pro Tem Murray E. Nelsoo, Olstrttt 5
George Neugent. Oisbict 2
OIaIfes "Sonny- Mc(:oy, District 3 .
David P. Rice. District 4 .
.
. -. I
..... -./ I
.r- ;:':"; 1 ~,
To: James L Roberts
County Administrator
Through: James R. "Regale- Paros,.- Director @ _
Public Safety Division r I'
From: Carol A. Cobb, OM, Sr. Admlnlstratord/a M
Solid Waste Management
Subject: City of Marathon - ~ Fees Owed
Date: October ~ 2003
Attached is a copy of the most recent billing statement, which has been mailed to the Oty
of Marathon, showing a baJance due of $541,436.16.
The breakdown is as follows:
June 2003
July 2003
August 2001
September
$136,022.84
$133,222.44
$138,965.04
$133,225.84
The last payment received was on June 20, 2003 for the May 2003 statement.
enclosure
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OCT - 3 2{)fJJ I \iF
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