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HomeMy WebLinkAboutCouncil.Minutes.01-03-1994.Regular 343 Proceedings of the City Council, City of Cape Girardeau, Mo. R�� S2SSIOn January 3 19 94 SLL.13703 REGiTI.AR SESSION - JANUARY 3, 1994 Council convened in regular session on Monday, January 4, 1994, at 7:30 p.m. with Mayor Francis E. Rhodes, presiding and Council Members Melvin Gateley, Melvin Kasten, Doug Richards, A1 Spradling III, and Mary Wulfers present. David Limbaugh was absent. Prior to the regular session, a public forum was held at 5:30 p.m. to report the status of development of excursion riverboat gaming in the city and receive public comment on this issue. Notes of the public forum are attached hereto and made a part of these minutes (Exhibit A). Prior to the regular session, council convened in Executive Session for purposes of discussing real estate issues upon Dr. Kasten's motion, Mr. Gateley's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. The invocation was presented by Rev. Ron Watts, Pastor of Cape La Croix United Methodist Church, and the Pledge of Allegiance was recited. The minutes from the December 20, 1993, Regular and Fxecutive Sessions were approved upon Mr. Spradling's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. The agenda was adopted as distributed to the Council upon Dr. Kasten's motion, Mr. Gateley's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. This being the date set for a public hearing regarding the request of International Church of the Foursquare Gospel for a special use permit for a temporary church school at 1222 and 1224 Bloomfield Street in an R-3, two-family residential district, the hearing was opened. There being no appearances, the hearing was closed. This being the date set for a public hearing regarding the request of David and Cheryl Kinder, S. Jeannie Stout, and William E. and Jannette Pogue for a special use permit for a yard sign at 444 Marie Street in an R-4, multiple family residential district, the hearing was opened. There being no appearances, the hearing was closed. This being the date set for a public hearing regarding the request of Lon and Joyce Maxey for a special use permit for a business office with a non-resident employee at 33 Rivercrest Drive in an R-2, single family residential district, the hearing was opened. There being no appearances, the hearing was closed. 344 Proceedings of the City Council, City of Cape Girardeau, Mo. Regular $@SSIOCI January 3 19 94 SLL.13703 Ms. Brenda Dohogne appeared before the Council and submitted a proposal on alternatives to raising trash collection fees. A copy of the proposal is attached hereto and made a part of these minutes (Exhibit B). Mr. Mike Post, District Manager of BFT in southern Illinois, appeared before the Council and asked the Council to consider soliciting proposals for residential trash hauling in Cape Girardeau and consider privatizing the residential hauling. He stated that BFI could work with the city on possibly using their employees and/or disposing of the city's equipment. Mr. Don Howard appeared before the Council and asked the Council to allow the citizens of Cape Girardeau to decide whether or not they want the residential trash hauling to be privatized. Regarding item 23 on the agenda, discussion on alternatives relative to solid waste fees, Mr. Gateley made the following motion: That the City Council request the staff and Solid Waste Task Force to (1) develop a volume-based solid waste program; (2) reconsider the frequency (schedule) of curb-side recycling pickups; (3) present alternatives regarding special services the city is currently providing to the citizens, i.e. leaf collection, special collections, etc.; (4) expand the education program which helps the public to understand the benefits of current programs and services; (5) address the issues outlined on page four of the Solid Waste Task Force Recommendation and Report dated December 3, 1992, i.e. mandates, landfill closure, post closure, Subtitle D, etc.; and (6) share report and recommendations on items one through five above with the City Council during a study/work session before placing same on the agenda. The motion was seconded by Ms. Wulfers. Mr. Richards made an amending motion, seconded by Mayor Rhodes, that the city staff prepare a request for proposal (RFP) for bidding out the trash service for privatization and sending out the RFP to companies interested in bidding on the service. Mr. Richards explained that requesting proposals for the services does not bind the city to accept any of the proposals received. The RFP would be reviewed by the Council before it is sent to any vendors, and the RFP would be sent out before this issue is reviewed by the Solid Waste Task Force. After further discussion, Mr. Richards amending motion failed upon the following roll call vote: Gateley, aye; Kasten, nay; Rhodes, aye; Richards, aye; Spradling, nay; Wulfers, nay. Mr. Gateley's original motion was approved upon the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. 345 Proceedings of the City Council, City of Cape Girardeau, Mo. Regular SeSSIOCI January 3 19 94 SLL.13703 Mr. Richards expressed his concerns about how the city could justify to the citizens of Cape that businesses are given the option to use city trash services or to use a private vendor but citizens are not allowed this opportunity. The following bills were given second and third readings: BILL NO. 93-281 AN ORDINANCE EXTENDING 'THE TERM OF FRANCHISE ORDINANCE NO. 1274, PASSED DECEMBER 7, 1977 BILL NO. 93-284 AN ORDINANCE ACCEPTTNG PERMANENT EASEM�NTS AND T'ENIppRARY CONSTRUCTION EASEMENTS FROM GOLDEN CAT CORPORATION; INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF SCOTT, MISSOURI;ROBERT A.DRURY; AND DSW DEVELOPMENT CORPORATION, FOR A CITY OF CAPE GIRARDEAU WATER MAIN The second and third readings of BILL NOS. 93-281 and 93-284 were approved and the ordinances adopted upon Mr. Spradling's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. BILL NO. 93-281 is ORDINANCE NO. 1468; BILL NO. 93-284 is ORDINANCE NO. 1469. BILL NO. 93-287 was given first reading as follows: AN ORDINANCE GRANTING A SPECIAL USE PERMIT TO INTERNATIONAL CHURCH OF THE FOUR SQUARE GOSPEL, FOR PURPOSES OF CONSTRUCTING, MAINTAINING AND OPERATING A TEMPORARY CHURCH SCHOOL AT 1222 AND 1224 BLOOMFIELD STREET, IN THE CITY AND COUNTY OF CAPE GIRARDEAiJ, MISSOURI The first reading of BILL NO. 93-287 was approved upon Mr. Gateley's motion, Mr. Spradling's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. BILL NO. 93-288 was given first reading as follows: AN ORDINANCE GRANTING A SPECIAL USE PERMIT TO DAVID AND�E� _ KINDER, S. JEANNIE STOUT, AND WILLIAM E. POGUE, JR., AND POGUE,FORPURPOSES OF CON5TRUCTING,MAINTAI1vIN C�OY O�E A YARD SIGN AT 444 MARIE STREET, IN THE CITY AND GIRARDEAU, MISSOURI The first reading of BILL NO. 93-288 was approved upon Dr. Kasten's motion, Mr. Spradling's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. 346 Proceedings of the City Council, City of Cape Girardeau, Mo. Regular SeSSIOtI Januarv 3 19 94 SLL.13703 BILL NO. 93-289 was given first reading as follows: AN ORDINANCE GRANTING A SPECIAL USE PERMIT TO LON AND JOYCE MAXEY, FOR PURPOSES OF MAINTAINING AND OPERATING A BUSINESS OFFICE WITH A NON-RESIDENT EMPLOYEE AT 33 RIVERCREST DRIVE, IN THE CITY AND COUNTY OF CAPE GIRARDEAU, MISSOURI The first reading of BILL NO. 93-289 was approved upon Mr. Spradling's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. BILL NO. 94-1 was given first, second and third readings as follows: AN ORDINANCE APPROVING THE RECORD PLAT OF ASHLAND HILLS ESTATES EIGHTH SUBDIVISION The first, second and third readings of BILL NO. 94-1 were approved and the ordinance adopted upon Mr. Gateley's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. BILL NO. 94-3 was presented as follows: A RESOLUTTON AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT WITH THE MISSOURI DEPARTMENT OF NATURAL RESOURCES FOR A COMBINED SEWER OVERFLOW CHARACTERIZATION STUDY The reading of BILL NO. 94-3 was approved and the resolution adopted upon Mr. Spradling's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. BILL NO. 94-3 is RESOLIJTION NO. 888. BILL NO. 94-2 was presented as follows: A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ESCROW AGREEMENT AND IRREVOCABLE LETTER OF CREDIT WITH ASHLAND LAND DEVELOPMENT CORPORATION AND CAPITAL BANK OF CAPE GIRARDEAU COUNTY FOR ASHLAND HILLS ESTATES EIGHTH SUBDIVISION The reading of BILL NO. 94-2 was approved and the resolution adopted upon Mr. Gateley's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. BILL NO. 94-2 is RFSOLU'TION NO. 889. BILL NO. 94-4 was presented as follows: 347 Proceedings of the City Council, City of Cape Girardeau, Mo. Regular $@SSIOn January 3 19 94 SLL.13703 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTBR INTO A CONTRACT OF OBLIGATION WITH THE MI5SOURI DEPARTMENT OF � NATURAL 1tESOURCES FOR THE LANDFILL POST-CLOSURE � The reading of BILL NO. 94-4 was approved and the resolution adopted upon Mr. Spradling's motion, Dr. Kasten's second, and the follo no evotBILL NO. 94e4 is Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, RESOLU'TION NO. 890. BILL NO. 94-5 was presented as follows: A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INT� A CONTRACT OF OBLIGATION WITH THB MIS50URI DEPARTMENT OF NATURAL RESOURCES FOR THE LANDFILL CLOSING The reading of BILL NO. 94-5 was approved and the resolution adopted upon Mr. Spradling's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. BILL NO. 94-5 is RFSOLUTTON NO. 891. A temporary retail liquor by the drink license for an event sponsored by the American Cancer Society on February 26 at the Arena Building was approved upon Mr. Spradling's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. The extension of the water distribution system to serve the Route W trailer court was accepted into the city's system upon Mr. Gateley's motion, Mr. Spradling's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. The release of the remaining escrow balance of$11,500 for Clarkton Place 5ubdivision Phase III was authorized upon Mr. Gateley's motion, Ms. Wulfers' second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, Spradling (abstain), Wulfers. Nays, none. Mr. Spradling made a motion, seconded by Mr. Gateley, directing the city staff to obtain � additional information on public housing and to place th on the followinXt ote:C Ayes, agenda for discussion. The motion was approved up g Gateley, Kasten, Rhodes, Richards, Spradling, Wulfers. Nays, none. Regarding the Sister City Program with Shao�ng, China, Mr. Gateley made a motion, seconded by Mayor Rhodes, that the date for arrival in Shaoxing be set for May 18, and the maximum number of people to go to Shaoxing be set at 15. The motion was approved upon the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, 5pradling, Wulfers. Nays, none. Mayor Rhodes announced that when the official delegation comes 348 Proceedings of the City Council, City of Cape Girardeau, Mo. Regular $gSSlOtI January 3 19 94 SLL.13703 to Cape Girardeau, the city will be responsible for paying their meals, lodging and transportation once in the city. � There being no further business, the Council adjourned upon Mr. Gateley's motion, Mr. L� � � � Spradling's second, and the following vote: Ayes, Gateley, Kasten, Rhodes, Richards, V`°� Spradling, Wulfers. Nays, none. , Francis E. Rhodes, Mayor y i ;� Gayle . Conrad, Deputy City Clerk M � � � � � 349 EX��BIT A PUBLIC FORUM EXCURSION RIVERBOAT GAMIING 1Vlonday, January 4, 1994, 5:30 p.m. City Council Chambers NOTES OF PUBLIC FORUM Rev. Kim Ferguson of the Ministerial Alliance appeared before the Council and thanked them for addressing the Ministerial Alliance's concerns as outlined in their letter presented to the Council at the public forum on December 20, 1993, and for including their letter in the Request for Proposal. There being no further discussion, the public forum was concluded. Notes taken and transcribed by Gayle Conrad Deputy City Clerk Exhibit B - 351 ALTERNATIVE5 TO RAISING TRASH COLLECTION FEES : II The City of Cape Girardeau is wrestling with the problem of a trash collection fee increase. Both volume-based trash billing and a selected reduction in services offered have been proposed as alternatives to an increase in the monthly fee. Used in conjunction with one another, these alternatives could provide a satisfactory solution to our city' s dilemma. Volume-based billing could afford us several advantages over our present system of a flat monthly fee. Volume-based rates give a big boost to recycling, as residents are given an economic incentive to recycle. Increased recycling would , in turn, reduce the overall amount of municipal solid waste collected and , therefore , lower tipping fees. Volume-based programs also create greater equity for those � like senior citizens, with less to spend and who generate less waste. Volume-based trash fees are determined by the amount of garbage thrown away. Our Sanitation Department � however, has to cover basic operating costs in order to provide this service ---expenses incurred in addition to the tipping fee at the landfill. Therefore , a basic service fee plus a volume-based fee is needed to satisfy both the customer and cover the expenses of the Sanitation Department. City Manager J . Ronald Fischer and Assistant City P"anager poug Leslie made reference to such a fee system in an agenda letter to the City Council. ( 1) . Exhibit B. ' 352 In the February 199i issue of BioCvcle an article entitled "Calculating Volume-Based Garbage Fees" explains how one can calculate the per household expense of trash collection service through a statistical technique called regression analysis. � � Please see the attached article. ` � a� The Sanitation Department also needs to give continued � attention to reducing its general overhead. If the City of Cape were divided into four zones and curbside recycling were offered once a month in each zone , surely a significant reduc- tion in its recycling expenses could be realized. Also , has the Sanitation Department reviewed its commercial . trash collection routes to ensure that they are efficiently laid out% Servicing commercial dumpsters within close proximity to one another on different days of the week does not make good economic sense . Finally� has our Sanitation Department ever pursued a market for recycling expanded polystyrene , the material of which styro- foam cups and plates , egg cartons , and packaging peanuts are made? l�'. P.S. , a Perryville-based company, recycles expanded polystyrene . Although they do not_ pay the .customer for the poly- styrene , they very likely would pick it up for us at our recycling center, thus saving our city the expense of transporting it to rerryville . The person to contact for additional information k is : Donna Noe , P. O. Box 348, Perryville , TJIO 6377�, 1-800-888-2332. � � Lxt. 337 . (z) Exhibit B .. . 353 With taxes going up in 1994 at both the federal and state levels, hopefully our city's Sanitation Department can break this cycle of tax-and-spend by capping off� or even reducing, its trash collection fees. . Respectfully submitted. Brenda Dohogne (3) Exhibit B 354 6,_ �� . �T T Dc ,T i Dc HOW TO CALCULATE FEES._' " �. ���P�CT Ol� ��ULEi47�CO1`SL�lEiW , Establishing the fee for the volume- or > weight-based unit is simple: Divide the - : iandfill's tipping fee by Lhe weight or vol; - ume. The Rice County landfill charges. haul�rs$40 for every ton they dump there. : � � - That is$.02 per pound.So if a basic ievel of � � weekly garbage service includes one 40 � `' -� . pound can or bag,the cost of dumping is$.80 per week,or$3.20 per month. Calculating the hauler's basic operating ■ fee is not so simple. Even when househol'- , _ reduce their weekly output due to waste�, , duction and recycling,the hauler's colle _ - efTort is not reduced proportionally.Mo their work is stopping at each residenc empty garbage containers. Additional tainers do not require much more time.An - if they operate within 15 miles of a landfill, ` transportation out and back may not con- OLU?��IE-or weight-based- tribute significantly to their expenses. garbage fees are determined if the hauling service is provided by a pub- The ke 131 - - by the amount of garbage lic agency, like a city, operating costs are ythrown a��ay. The rate struc- part of the public record and can be divided CalCUIL�t111 ' ture is directly related to the by the number of households served. If the gtipping fee that the hauler hauler is private,contracting with a munic- garbage f eeS t0 pays at a landfill or transfer ipality or directly with customers,operating station. The system is equitable,because it costs may be held closer to the chest,mak- lease b o tlz is blind to age,housing unit or family size, ing it more dif�icult to determine a fair price pand sees only the amount of trash on the for hauling less garbage. However, wnth a custos�iers and � curb.It supports waste reduction by going to little homework and a sharpened pencil,it is the heart of the issue—the amount of possible to determine an appropriate oper- hauierS 1S t0 garbage being landfilled. ` , ating cost based on the average revenue of The concept is not new. Public utilities haulers in several communities. Simple av- . � ZlfldeYStGifld tjlat 'such as�;ater,heat,telephone and electric- eraging dcesn't work,because communities ity are all charged on a volume basis.The and haulers'practices vary. YedUCed COIIECt101Z state of'�4innesota has ruled-that garbage A statistical technique called regression will be handled the same way,and that gen- analysis (see sidebar) determines average fees a��e dl.fe tO erators of garbage wZll pay accordingly.The operating costs adjusted for the different 19891egislation"requires(the)licensing au- size communities and garbage collection lowerti IYl �ority icity or county) to base charges for and disposal methods.Regression analysis �� g -� residential collection services on the weight computes a linear equation from a sample of feesnot reduced °=°°l�'e°f�,e Was��°i'e��a" paired data. In this case, the hauler's net i The strength;indeed the rationale for vol- rerenue minus the tipping fee is computed f ees to hau lers f or ume-or v�eight-based fees,is the choice it of- using average amounts of garbage per fers the K aste generato� to reduce their household,the household's garbage bill,and collection service. Lessagarbagetmeeans lessetonnage at the �Regr ssion analysis calculates the landfill. This costs the hauler less to tip hauler's fixed operating costs plus the incre- which can translafe into a lov�er bill for the mental increase in costs for servicing each Margit JOIttlSOti attd customer. How simp]e it would be to deter- additional household.When those costs are Wiiliar��L. Carlson mine the tipping fee per cubic yard or pound divided by the total number of households of garbage,v�eigh the can or bag at the curb served, an annual basic service rate per and call it a volume- or weight-based household results. The total garbage fee garbage bill. charged to each household is equal to the Howerer,that formula overlooks the oth- hauler's costs per household plus the tipping er half of the equation—the haulers provid- fee times the number of tons per househola ing the collection service.The tipping fee at For a resident in Rice County,Minnes the landfill is a significant expense for the annual garbage fee for weekly pic haulers. But they ha�e other costs to oper- of one can with 40 pounds of trash co ate a collection and transportation busi- be $118.66 [$77.06, (the hauler's r ness—fuel,labor,truck maintenance,insur- enue/household)+$41.60(the tipping fe ance, etc. Some of those costs are fixed, �40 ton x(40 pounds x 52 weeks)].The vol- regardless of the amount of garbage hauled. ume-or weight-based fee is activated when So if customers reduce their garbage the resident throws out more than 40 through careful buying,repairs or recycling, pounds per week.If two 40 pound cans were the hauler still has to cover basic operating set out every week, that would double the costs in order to provide the service.There- tipping fee, making the resident's annual . fore, a basic service fee plus a volume- or bill $160.26 [$77:06, same revenue needed weight-based fee is needed to satisfy both to provide collection service,+$83.20($40 x the hauler and the customer. (80 pounds x 52 weeks)].Or take the thrif�y 48 B�oG�c� FEaRv�xY 1991 Exhibit B 355 '"saper-saver on the black �vho throws ouC ly setting out ga'rbage in excess of Lhe basic only 25 pounds per�.•eek, thanks to source -_ _: , ]evel of service"for 40 pounds would �hen be reduction or recycling. Their garbage bill �� aVera e Paying, say, up to $274.6fi for service'in- �could be$103.06 [577.06,tsame weekly co1- ' g , % duding a�veekly second"overweig�t"can ar lection service)+ 526.00(S40 x (25 pounds TeVeI1UC lOr a ; > bag[577.06,same hauler revenue,+�41.60, ' x 52 weeks)J. The key in ca"Iculating ; , ; ,.. ; �, (tippingfee.for40poundsincludedintheba , garbage fees to please both customers.and. `� sic]evel of�service) +$156.00;(at$3/"over. '�: ` 1lauler s collection haulers'is to understand that reduced col- - - �weight" can x 52,wyeeks)]. That same cus- � lection fees are due to reduced tipping fees, SeI V1Ce Can be � tomer might seriously consider reducing or not reduced fees to haulers for their collec- recycling their waste in order to fit within • tion sen-ice. the basic 40-pound level of service at obtained usin�- we�er, fees for "overvveight" garbage c7 $118.66 rather than continue garbage dis- � be structured to discourage residents UbliC da�a posal as usual at $274.66. Higher tipping ; filling two or more cans.Instead of just p fees may have a suff cient impact on the - , 'plying the additional volume or�rei ht variable per unit rate so.that artificial rate g without delvina e tipping fee, an upwardly increasing b schedules may not be necessary. can be applied to e.ery additional unit j�t0 the de�d�ed However,when artificial rates do go into of garbage. �'Vhile the first can or bag u�th 40 pounds of garbage may cost 5.30(at a S40 ��1cial records of per ton tipping fee),aaa�t�onal�ns or bags Hauler Revenue Less Tip Fee at 40 pounds each may be charged S1.00, �dividual haulers. �• - - :..._..:. $1.50,�3.00 or more.The customer regular- ,. ' � ' - _ Total Revenue(51,000) _ 5500 COMPUTtNG NAULER COSTS USING �°° ' . . . � • - REGRESStON ANALYSIS S� . . . � typical or average revenue for a .-annuai tons of garbage for a communi- 3too ' hauler's collection service can be tY is multiplied by the number of house- SD obtained using pubiic data with- hoids times 1.4 tons per household o 2 4 s 8 to out having to delve into the detailed fi- (based on surveys documenting aver- Number of Households (1,000) nancial records of individual haulers. age household tonnage per year).Total Fgure 1 . __ -- The net revenue less tipping fee for annual tipping cost for the community each hauler is computed using average is computed by muftiplying the number garbage generation per househo(d,the of tons times the tipping fee per ton. holds but the points do not fall on a household cotlection fee, and the�tip- Net hauter revenue results by subtract- straight line.The line drawn among the ping fee.Data for a sample of haulers in �+�9 total�tipping costs from the total points. the linear equation of the re- a region is then analyzed using regres- hauler revenue.For example,computa- gression analysis,is based on the com- sion analysis to obtain a typical, tions for the community of Redwood munities'residential and waste dispos- colleciion cost per household. : Falls are: al patterns_and the cost of providing To:ai nauier re�enue �s�)x�2.20o nousenoias collection services to these communi- Regression analysis. widely used in .S2t1,� ties.ln a ciiy in southeastem Minnesa economic analysis,can be demonstrat- rap�nq cosc �s3o�x�2.200)x��.a�onsmousenoi� ta,a hauling business employs 5 work- ed with an example from southern Min- Net raokr re�enue :$jig 000 ers at S8/hour with 35% in fringe . nesota. Table 1 presents the tipping benefits. Two packer trucks cost fee, household fee, and number of Net hauler revenue for each of the com- $75,000 each,with an operating cost of . househotds for a sample of Minnesota munities is listed in Table 1. SS/hour and a life expectancy of 7 communities. Total hauler revenue for Figure 1 is a ptot of net hauler rev- years.Annual insurance on each truck each community is computed by multi- enue versus the number of households is cafculated to be 51,600. Labor and plying the household fee times the in the community. Notice that revenue truck costs total$179,068.Flfteen per- number of households. Then the total increases with the number of house- cent management-supervision costs and an 8% profit are added to create a Sn3a1('nct Df b������Df$223,385.Us- Table i.Solid Waste Nau/erRevenus ing the equation "hauler revenue = $134,386 + 530.72�times (number of households)" based on the regression HousehnldFee No.of H2ulerRevenue analysis for 9 southeastem MN cities, Ciry Tipping Fee (annual) Households (Less Tip Fee) the 10th city trying to establish reason- able rates for 2,900 households comes Redwood Falls 530 S96 2,200 5118,800 up with$223,478. '. Faribault ' S40 St36 2,500 5200,000 Another equation would be devel- . waseca S28 St32 2,70o S250,560 oped to represent local conditions else- Marshall S24 S84 4,00o S2ot,600 where. Iv4icrocomputer programs and - Austin Sa2 Si36 4,000 S3oe,so0 many desk calculators provide the ca- Winnona S55 S14a 4,00o S268,000 pability to carry out the computations. • t Owatonna 527 5120 5,500 5452,100 The assistance of a person trained in re- i Albert Lea S27 S84 6,00o 5277,200 gression analysis will insure correct in- � Mankato �� 523 572 9,000 5358,200 terpretation of the results. � ' � B�o�,�� Fssac�RY 1991 99 Exhibit. B 356 effect for "o�erweight" garbage, the dif!'er- garbage.However,even�ncluding operating ence between the actual t�pping fee and the costs in the per bag price doesn't necessari- The IY�IOSt "overweight" charge should be earmarked ly pay for the weekly service if customers for additional v��aste reduction or recycling use bags only bi-weekly or monthly, or not aCCUIa�e lOTITI Ol education or sen•ice, or enforcing illegal at all if they go south in the winter. dumping ordinances,instead of being pock- This system is very responsive to varying Welght-based f ee eted by the hauler as profit for hauling more '° amounts of garbage generated by the cus- garbage.The system is designed to cover the "tomers. The hauler �s paid for the service 1S �O Wel h �lle hauler's fir.ed costs and tipping fees, not to prior to delivering i� Ho�verer,-significant gpro��ide a financial��indfali for continuing to waste reduction could erode hauler rev- • haul]ots of garbage. enues needed to cover fixed costs.The bags garbage itself. themselves generate more sheet plastic in a HOW TO IMPIEMENT THE PROGRAM: landfill. They are not reusable or anir--?- Ideally, the scale . cone�t�o„e�t;on fees requ�Te an a��ra� proof, as are cans. They require a r is eomputerized measurey ent of the amount of garbage gen- amount of shelf space at city�hall n � erated b each household. ASeasuring the stores.It is difficult to price additional � rC sterin �1 Le amount of garbage can vary according to the per��eek at a higher rate to encourage ' e � g hauler's equipment and level of service,the reduction, because they are usually s ' address and municipality's billing system,or other local quantities and rate of use varies widel . factors.Ho�e�•er,the unit,like the entire fee 4.Pre-paid stickers or tags weight in a file structure, must be measurable and v�•ork- Stickers or tags attached to cans or bags able for both hauler and customer. Typical can be a responsi��e and economical way to whieh feeds into measurement models include: implement a volume• or weight-based fee - 1.Actual a eight of garbage system.Because they are smaller than bags, the billin The most accurate form of v�eight-based they can be mailed��rith the garbage bill to gfee is to �teigh the garbage itself. Like the customers by the hauler or the city. The TO TaI11. packer truck on the landfil] scales, the can price,representing the tipping fee for the al- pg or bag is�reighed before and after,or a stan- lowable weight per unit,is added to a basic dardized can is used to determine the weight monthly, quarterly or annual ser�rice fee. If of that �eek's refuse. Ideally the scale is the basic weekly senzce includes one can or computerized, regi�tering the address and bag per W�eek for a year, 52 stickers or tags w�eight in a file which feeds into the billing are mailed. If customers generate more program.The household is billed for the ex- garbage and use the stickers or tags at a act amount of garba;e set out,plus the ser- faster rate, they purchase more stickers or vice fee.This sS stem offers customer conve- tags to cover the higher tipping fee for that nience and accuracy,but has high front-end additional trash. The price of the "over� costs for scales and possibly semi• or fully- weight" stickers can be higher than the ac� . automated trucks, standardized cans, tual tipping fee to encourage waste reduc- record keeping and billing.Haulers in high- tion and recycling. If customers use fewei density metropolitan areas may be the first than 52 stickers per year,they do not receivE } to afford the equipment for this system. a rebate—that is considered a minimum lev� 2.Variable cans or bags el of service. But they can sell their extr� Variable numbers of cans or bags are the stickers to other customers, thereby reduc� basis for �olume-based fee s�stems. If they ing their own annual fee. Stickers and tag: are dumped in a weight-based landfill,how- are responsive to varying amounts o: ever,a weight limit is needed to prevent can garbage, and they can be used on specia stuffing or mechanically compacted garbage items such as large brush or furniture. in bags.�'�'ith a variable can or bag system, Volume- or weight-based garbage fee: the customer subscribes to one,two,three or standardize the collection of v�aste from th< more units per�veek.The garbage bills con- moment it leat es the curb to the time it i: sist of a basic service fee plus the cost to tip dumped in a landfill. Everyone, customer: . the makimum allo�red v��eight in the one or and haulers, pays according to the samf more cans or bags. Haulers must know the rules.Minnesota state laws ha�e recognizec number of cans subscribed to at each resi- the logic and the need for mandatin� dence. If haulers use route sheets, "over- "charges for residential collection servic� weight" garbage (after holidays, etc.) is �(based]on the weight or�olume of the wast� noted and the billing changed to reflect in- collected." creased amounts. If route sheets are not The immediate challenge for each cora ; used, it is difficult to record and bill for munity is to organize an efficient wast' amounts beyond the subscription rate. lection and transportation system whi 3. Pre-paid bags duces the waste material going t � = Pre-paid bags are another form of volume- landfill or incinerator. That system s c ;: based fees. As mentioned, a maximum pmvide a fair return for garbage haul ,. w weight limit per bags must be established if a minimum cost to customers. � �� the hauler is paying per ton at the landfill. � Bags,sold wholesale by the hauler or city,or retail in local cooperating stores, are priced to reflect both the hauler's operating costs Margit Johnson is Rerycling Coordinator fc and the tipping fee for the maximum weight Rice County, Minnesota. William Carlson i r� .. limit. A customer with little garbage buys Professor of Economics at St.Olaf College,a1s fewer bags than a customer with a lot of Iocated in Northfield,Minnesota. :� +; SO BIOCYCLE FEHRliARY 19!