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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 ~~"""""~"""""""''''''''~'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''f''''IiW"""",,,,,,.....,,,,,,,,,,,....,,,....,,,....,,...,.,,,,,,,,,,..,.,.,,.,.,,.,I'''et.,/,,,.,,,.,~,..,.,., ~''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''f''''tIt.I,....., 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 ~\ n - I tU.)'-;. 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 . rf,-r l.l "w I .. l, , 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 OO~m n WI ~ 1:)" It ~" OCT - 3 2{)fJJ I \iF L __..___.- MAnA.....Hr~.. ,.,,~..,... . FVtf vi\! rU f'\i- .,'~ .