1. Navigating Difficult Waters November 1, 2017 Will Sagar
Recent SERDC work in Alabama. Some of this will be relevant for Mississippi.

2. SPONSOR LEVEL MEMBERS
Some of our sponsoring members that have made this possible.

3. Markets are Supply and Demand
Connect the economic impact to elected decision makersWIdea
I den
Markets are Supply and Demand

4. Current Concerns Trends Demand is strong
Cheap oil = low material prices
Contamination growing
China actions
Glass issues
Demand is strong
Manufacturing
Supply is inelastic, leading to big price swings.
You can’t turn it off, citizens want service
Let’s explore this a bit deeper.

5. Prices Follow Energy ACR= Aggregate Commodity Revenue
CAGR=Compound Annual Growth Rate ACR-Average commoditiy revenue
ACR= Aggregate Commodity Revenue

6. Inelastic Supply
A small change in quantity can result in a large change in price. A small drop in demand, can result in a large price drop.

7. Last year we updated our demand map
360 manufacturing facilities, dependent, or using recycled material for feedstock.
Over 90K job.
Over $40MMM.
The map on our website.
Filter state,
Material type

8. Weather the storm Contracts Operations, lower the cost
Risk vs reward. Where to place it?
Operations, lower the cost
Efficient infrastructure, lower cost at manufacturer’s dock
Hub and spoke
Increase participation
Carts, automate
RFID, measure what you are doing
Clean up the material
Slow line speed
Add staff
Invest in education

9. Best Management Practices
Cart based single stream Common suite of materials Standardize outreach Hub and spoke system
H&S Scale and efficiency
Common suite to all communities in the region or at least the MRF shed.
I can say “Don’t mess with Texas” anywhere and they know what it means. Why not a similar slogan for Recycling?

10. Collection by Spokes

11. Get Rid of Bad Practices
Subscription / opt-in recycling collection Material separation at collection, including convenience centers Free market hauling, move to exclusive franchise collection and permitting Examine MRF contracts Ensure the front line knows what and why Fix messaging!!!! GET THE MESSAGE
Subscription NO. Get everyone in. The cost per ton drops.
Single stream for all.
When asked if they would like to change the local collection system if there was even a modest cost savings, a majority of our residents preferred an efficient, less-expensive option. A vocal minority, however, believe municipal or contracted collection is an infringement on their rights.
Messaging, Common Suite of Materials. State wide promotion.

12. And get Control of what you do.
Cleaner Bales
Slow belt speed
Review contract
Share risk
And get Control of what you do.
The leaders were from state agencies that provide technical and, in some states, financial support for recycling. While the state agency role is support and leadership, the actual management of material usually falls upon the shoulders of local government that may not have the resources they need to create efficient systems.
The end result of the project was the release of two tools -- the ISWM model and a fiscal analysis method to determine the full cost of a program’s material management.

13. And get Control of what you do.
Two Tools
One tool will assist in examining the costs and benefits of providing new materials management services, or expanding existing services. The second tool was an introduction to full cost accounting and system funding.
And get Control of what you do.
The leaders were from state agencies that provide technical and, in some states, financial support for recycling. While the state agency role is support and leadership, the actual management of material usually falls upon the shoulders of local government that may not have the resources they need to create efficient systems.
The end result of the project was the release of two tools -- the ISWM model and a fiscal analysis method to determine the full cost of a program’s material management.

14. ISWM Model Input of community profile
Cost and benefits of different collection options
Evaluation of role in a hub and spoke system
The ISWM model is a process or tool through which local governments could easily assess the potential for providing new or expanding existing services. The downloadable file allows the user to input several parameters about the community. Some input is objective and some rather subjective, together building a realistic profile of the situation.

15. Here is all that you have to enter for the model and if you do not have the information for 4 through 11 it will support you through more assumptions and default answers.

16. Results - Impacts
1. Tons of Recycling per Year 2. Pounds of Recycling per Household per Year TOTAL COLLECTION COST 3. Annual Net Cost (Total) 4. Annual Net Cost (O&M Only) 5. Cost per Household per Year 6. Cost per Ton Recycled 7. Capital Cost (Total)
The results following the data entry provide an easy to read comparison of multiple approaches or program choices. The results can be utilized to not only choose program direction, but also to provide third party justification for program recommendations when proposals are presented to elected decision makers. The model will project cost per ton and per household as well as providing annual operating and capital projections for program budget development.

17. Results - Details
8. Total Number of Vehicles (Including back-up and support) 9. Total Number of Staff 10. Total Number of Drop-Offs 11. Capital Cost Vehicles (Including back-up and support) 12. Capital Cost Containers 14. Annual Cost for Drop-Off Sites (Total)
‘The results give a reasonably detailed cost projection that can be used for program planning and budget forecasting.

20. Planning for program and service expansion is crucial, but you cannot plan where you are going, if you do not know where you are. Local government budgets and accounting can make it difficult to fully understand the true cost of solid waste and recycling operations. Typically, capital expenditures are totally expensed at the time of purchase. Thus, true costs of operation may be hidden and undetermined.
The handbook is not a complete lesson on FCA, rather it is an introduction that will assist the decision maker in making suitable choices and asking the appropriate questions. The document also presents an introduction into numerous methods of funding local government services so that service system managers and their elected leadership may optimize systems funding based on local conditions.
full cost accounting is also a powerful way to identify costs and benefits ( and who is or isn't receiving them/paying for them)

21. Interactive Tool Asset inventory Wages and benefits
Operations and maintenance
Capital outlays
Future outlays
Indirect costs
Input tool: allow for input of capital equipment and improvements through a complete asset inventory. Direct personnel costs (wages) and the cost of benefits is detailed for each employee. The form asks for a list of operational and maintenance costs and a factor is calculated for expected future capital outlays. The tool makes a complete and thorough assessment of a program’s finances.

22. Results Cost allocation Unit costs
Collection, disposal, recycling, composting
Unit costs
Residential
$/ton
$/household
Commercial
$/Customer

23. Ready for Download

24. Reasons to Invest Recycling is an economic driver Citizens want it
Connect the impact with the infrastructure investment
It’s just another community investment
Citizens want it
Environmental benefit
Economic investment. Less expensive than current incentives
Do we expect the community college, library, and other services to turn a profit? School buses? Some urban transit systems have no fares, to reduce traffic congestion.
Does the Economic Development Agency operate on department revenue?
It’s a citizen desired service, “Feel good saving the planet.”

25. And we don’t do it this way anymore
And we don’t do it this way anymore. We also don’t do it the way we did in the 50’s and 60’s.

27. Contact Information
Will Sagar
Executive Director (828) Director of Outreach and Member Services (828)
Jen Dabbs