Pay-As-You-Throw Workshop

Pay-‐As-‐You-‐Throw Workshop Cal Cunningham Mike Wrenholt

Les Evans Greg Peverall

Joshua Kolling-‐Perin October 23, 2013

Copyright © 2013 WasteZero 2

Agenda

Discussion of Best PracHces

1

Breakout Sessions: Program Design Analysis

2


Best PracHces for Pay-‐As-‐You-‐Throw WasteZero can provide a range of program services and community support to help municipal leaders with their waste reducHon program, both during the program’s launch and on an ongoing basis.

Supplements the website, par=cularly for residents without Internet access

Toll-‐Free Number

Informs residents of the program’s launch and provides vital informa=on

Launch Announcements

Provides cri=cal, program-‐related informa=on to residents

Program Website

Prepares officials to communicate effec=vely and consistently with media

Media Briefing Package

Explains the program and provides recycling and waste reduc=on =ps

EducaHonal Materials

Program Management

Provides the municipality with a main point of contact from WasteZero

Stocks municipal bags in local retail stores for convenient residen=al purchase

Retail Store DistribuHon™

Provides logis=cs and full accoun=ng to manage the inventory of bags

AccounHng and Financial ReporHng

Manufactures highest quality, drawstring bags with custom imprin=ng and packaging

Custom Bags and Packaging

Helps officials communicate and celebrate the program’s successes

Progress Reports and Case Studies

Program Services Community Support

WasteZero Trash Metering™


Custom Bags and Packaging

Custom Bags WasteZero will produce bags made of recycled content, which can be customized in many ways, including: !   External color !   The municipality’s approved seal, logo,

or art !   Prin=ng (e.g., toll-‐free phone number,

website informa=on) !   More

Custom Packaging WasteZero will supply its bags in custom packaging, including plas=c sleeves. Packaging may contain customized program informa=on for residents’ reference. WasteZero will apply for and manage UPC codes as well.


Retail Store DistribuHon

Retail Store DistribuHon™ Through its Retail Store Distribu=on program, WasteZero will:

!   Warehouse enough trash bags to support the program

!   Monitor and control bag inventory

!   Provide logis=cs and A/R collec=ons

!   Act as the municipality’s sales representa=ve, selling bags to retailers who

—  Wish to stock the product on their store shelves —  Comply with the applicable WasteZero policies and procedures

—  Maintain their accounts in good standing


AccounHng and Financial ReporHng

AccounHng and Financial ReporHng WasteZero will track and manage its inventory of trash bags for the program in the following ways:

!   Invoice retailers for each delivery

!   Address, and if necessary, suspend delinquent accounts

!   Provide full accoun=ng of program revenue, along with the payments to WasteZero and the municipality—every month


Program Management

At the program’s outset, WasteZero will assign a representaHve to serve as the program’s manager who will act as the community’s main point of contact and assist in a number of important ways.

Program Manager Services

!   Answering program-‐related ques=ons and ac=ng as the community’s primary point of contact

!   Suppor=ng all aspects of the program’s services and supplies

!   Ensuring =mely delivery of all services and supplies


Website

A customized website provides key informaHon to residents and is part of each WasteZero Trash Metering™ program. WasteZero uses its customizable template to develop the site and takes care of hosHng and updates.

Default Content !   Municipality name and seal !   Municipality contact informa=on !   Program toll-‐free number !   Program overview and benefits !   Bag prices and sizes !   Retail loca=ons !   Basic FAQs

Custom Content !   Custom FAQs !   Recycling and trash collec=on

guidelines !   Addi=onal informa=on on municipal

trash/recycling services

www.wastezero.com/yourcityname-‐state Program Website


Toll-‐Free Number

WasteZero provides a program-‐specific toll-‐free telephone number, offering criHcal informaHon to residents, parHcularly those who may not have easy access to the Internet.

Press 1 to learn what items you may recycle at the curb.

Press 2 to learn which retailers sell official trash bags.

Press 3 to speak to a customer representative.

Live sample: 888-‐329-‐8550

1-‐855-‐123-‐4567

Toll-‐Free Number

!   Operates 24 hours per day, 7 days per week

!   Provides self-‐service, pre-‐recorded informa=on briefs on topics that include

—  Where to buy bags —  Bag sizes and cost —  Website address

—  Other program informa=on as specified by the municipality


EducaHonal Materials

A library of community educaHon materials helps residents beber understand their waste reducHon program, as well as become more effecHve at reducing, reusing, and recycling.

EducaHonal Materials !   Wrieen in a friendly, easily accessible tone !   Customized with the municipality’s name

and municipal seal !   Made available to the municipality in

electronic format for easy prin=ng !   Can be posted to the program’s website !   Covers a range of useful topics !   Helpful for

—  Residents —  School groups —  Community organiza=ons

—  Environmental organiza=ons


Launch Announcements

WasteZero provides materials to help municipal leaders announce the program’s launch to residents. These materials are developed using WasteZero’s template and are customized with the community’s name and seal.

Launch Announcement Postcard !   Announces the program’s start date !   Outlines the program’s benefits !   Provides cri=cal contact informa=on, such as the

program’s toll-‐free number and Web address !   WasteZero provides prin=ng (color on front, black

and white on back) !   Municipality handles postage and mailing

Launch Announcement Flyer !   Provides the same informa=on as the post card, but adds

key retail store loca=ons !   WasteZero provides an electronic file to the community for

prin=ng


Media Briefing Package

For municipal leaders, providing clear and consistent messaging to the media regarding the program’s benefits and logisHcs is important. WasteZero offers a media briefing package to help leaders do this effecHvely.

Talking Points !   Program talking points for municipal leaders and officials, covering

—  The value and benefits of the program

—  Key logis=cal issues —  Frequently asked ques=ons (FAQs) with clear,

concise answers

Press Releases

!   Press releases designed to —  Outline the programs launch

—  Address and reinforce key messages

In addi6on, the WasteZero public rela6ons team can assist municipal leaders in speaking with the media if needed. WasteZero will only speak to the media during a program launch with the municipality’s knowledge

and approval, and only aDer a message planning session has been conducted.

Briefing Package Components



As the program generates significant and posiHve results, WasteZero can help municipal leaders communicate that to the media and to residents.


!   Regular repor=ng to the municipality regarding program results (requires the municipality to share some ongoing data with WasteZero)

!   No=fica=on when key milestones are achieved

!   Press releases outlining the achievement of key milestones

—  For the municipality to release —  For WasteZero to release, as well, with

municipal approval

!   Development of a case study highligh=ng the program’s success

WasteZero and municipal leaders will agree on a repor6ng frequency, meaningful milestones, and the level of ongoing support required.

With New Waste Reduction Program


More in Return™

More in Return™ As an op=onal part of a WasteZero Trash Metering™ program, More in Return™ provides a way to return a por=on of the program bag revenue to residents, thereby enhancing public approval and keeping residents’ costs low.

!   The municipality decides what percentage of the net bag revenue to allocate back to residents.

!   Eligible households receive rebates, in the form of a prepaid debit card, on a schedule to be determined by the municipality.

!   Bag revenue will be escrowed in such a way as to prevent any party from withdrawing money in a manner inconsistent with the purpose of the More In Return™ program.


Best PracHces for ImplementaHon

The most successful pay-‐as-‐you-‐throw programs are those that are implemented with the understanding that the municipality is conducHng smart change management.

Resident Engagement

•  Proac=ve outreach •  Educa=on campaigns

Sound Program Design

•  Based on current and desired infrastructure and technology

•  Easy to understand and adopt

Appropriate Pricing Model

•  Understanding star=ng point Ø  General Fund, Enterprise Fund

or blend? Ø  Visible or hidden fee?

•  True costs vs. required revenues •  Residen=al impact

ImplementaHon

•  Dedica=ng effort to the few weeks before and immediately aler program commencement

PosiHve Feedback Loop

•  Media and community outreach at milestone points, heralding success of program

In the aggregate, planning thoughFully for pay-‐as-‐you-‐throw is itself a best management prac6ce.


Program Design

1

2

3

4

Preliminary Financial Es=mates

Mul=-‐Year Financial Projec=ons

Poten=al Opera=onal Savings

Stakeholder Engagement & Poli=cal Approval

We recommend several steps in the program design process:


Preliminary Financial EsHmates

Retail Pricing of PAYT Bags

Change in Amount of Waste and Recycling



WasteZAP (WasteZero AnalyHcs Pladorm)



Retail Pricing of PAYT Bags

Number of PAYT Bags Used

Change in Amount of Waste and Recycling

Overall Financial Impact



Know Your Number Widget


MulH-‐Year Financial ProjecHons

Program Design ConsideraHons

•  Par=cipa=on Requirements –  Would small businesses with city trash

collec=on be required to par=cipate? –  Would mul=-‐family dwellings be included

in the program?

•  Bag Sizes –  To what extent would the city benefit

from including an 8-‐gallon “senior” bag?

•  Bag Pricing –  What solid waste revenue goals does the

city have? –  How should revenue be balanced

between flat fees and bag sales?

WasteZero Trash Metering™ programs can be customized in several key ways, including those below. WasteZero collaborates with municipaliHes to design a program that best meets the unique needs and objecHves of the city.

We then model a range of preliminary scenarios to show expected program outcomes, which may change slightly depending on how the program is ul8mately structured.

Waste Zero Trash Metering™ Preliminary Scenarios

•  ConservaHve: 30% waste reduc=on •  Moderate: 38% waste reduc=on •  Aggressive: 46% waste reduc=on

Illustrative


MulH-‐Year Financial ProjecHons

24,215 22,565 23,758

12,823

0

5,000

10,000

15,000

20,000

25,000

30,000

10 12 14 16 18 20 22

Annu

al Ton

s of M

SW Disp

osed

Fiscal Year

Projected MSW Disposed

Status Quo Scenario

WasteZero Trash Metering™

$-‐

$200,000

$400,000

$600,000

$800,000

$1,000,000

14 15 16 17 18 19 20 21 22 23

Disposal Savings

Fiscal Year

Disposal Savings

Expected Total = 75,000 tons diverted

(+/-‐ 20,000 tons)

Expected Total = $4.1M Saved (+/-‐ $1.0M)

Conserva=ve (30%) Moderate (38%) Aggressive (46%)

Aggressive (46%) Moderate (38%) Conserva=ve (30%)

Projected Disposal Impact By factoring in populaHon growth forecasts, contractual changes in disposal costs, and complimentary iniHaHves (e.g., organics programs), we can then refine the preliminary esHmates into a mulH-‐year projecHon.

Illustrative


PotenHal OperaHonal Savings

Reducing the amount of solid waste disposed allows municipal haulers to complete their collecHon routes more quickly, freeing them up to respond to other issues.

Case Study — NaHck, MA1

PROGRAM OVERVIEW Residents pay $1.75 for a 33-‐gallon bag and $1.00 for a 15-‐gallon bag. Recycling is free. WASTE REDUCTION •  Solid waste down 30% from 9,811 to 6,830 tons •  Recycling up 15% from 2,938 to 3,383 tons

OPERATIONAL BENEFITS •  The town reduced collec=on routes by one day per week, enabling bulky waste to be collected on designated days without requiring over=me.

•  DPW personnel were able to more quickly respond to complaints, fill pot holes, trim branches, etc.

“[The DPW was] able to go down to four day routes once the Pay-‐As-‐You-‐Throw went through, and they can now use Mondays just for bulky waste.” –Terry Miller, chairman of Na=ck’s Recycling Study & Advisory Commieee

1Murphy, Ian. B., “The payoff of pay-‐as-‐you-‐throw.” MetroWest Daily News. March 4, 2011.

!   Bag-‐based PAYT provides communi=es with municipal-‐operated collec=on addi=onal benefits. —  Short-‐Term •  Increased poli=cal value and resident

sa=sfac=on by more quickly responding to complaints and needs

•  Reduced fuel costs with shorter trips

—  Long-‐Term: If the municipality decides to restructure its DPW opera=ons, addi=onal benefits may be realized: •  Reduced maintenance costs to run its

solid waste collec=on fleet •  Lowered capital expenditures for new

equipment purchases


PAYT Breakout StaHons

1

2

3

4

Preliminary Financial Es=mates

Mul=-‐Year Financial Projec=ons

Poten=al Opera=onal Savings

Stakeholder Engagement & Poli=cal Approval

For the rest of the arernoon, we’re happy to answer any quesHons. Everyone can freely rotate through several breakout staHons related to the design and implementaHon of PAYT programs.

Pay-As-You-Throw Workshop

Business

Transcript of Pay-As-You-Throw Workshop