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Pay-As-You-Throw Workshop
1.
Pay-‐As-‐You-‐Throw Workshop Cal
Cunningham Mike Wrenholt Les Evans Greg Peverall Joshua Kolling-‐Perin October 23, 2013
2.
Agenda 1 Discussion of
Best PracHces 2 Copyright © 2013 WasteZero Breakout Sessions: Program Design Analysis 2
3.
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. WasteZero Trash Metering™ Program Management Provides the municipality with a main point of contact from WasteZero Program Services Custom Bags and Packaging Manufactures highest quality, drawstring bags with custom imprin=ng and packaging Retail Store DistribuHon™ Stocks municipal bags in local retail stores for convenient residen=al purchase AccounHng and Financial ReporHng Provides logis=cs and full accoun=ng to manage the inventory of bags Copyright © 2013 WasteZero Community Support Program Website Provides cri=cal, program-‐related informa=on to residents Toll-‐Free Number Supplements the website, par=cularly for residents without Internet access Launch Announcements Informs residents of the program’s launch and provides vital informa=on EducaHonal Materials Explains the program and provides recycling and waste reduc=on =ps Media Briefing Package Prepares officials to communicate effec=vely and consistently with media Progress Reports and Case Studies Helps officials communicate and celebrate the program’s successes 3
4.
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. Copyright © 2013 WasteZero 4
5.
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 Copyright © 2013 WasteZero 5
6.
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 Copyright © 2013 WasteZero 6
7.
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 Copyright © 2013 WasteZero 7
8.
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. Program Website 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 www.wastezero.com/yourcityname-‐state Custom Content ! Custom FAQs ! Recycling and trash collec=on guidelines ! Addi=onal informa=on on municipal trash/recycling services Copyright © 2013 WasteZero 8
9.
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. Toll-‐Free Number ! Operates 24 hours per day, 7 days per week 1-‐855-‐123-‐4567 ! 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 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. Copyright © 2013 WasteZero Live sample: 888-‐329-‐8550 9
10.
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 Copyright © 2013 WasteZero 10
11.
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 Copyright © 2013 WasteZero 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 11
12.
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. Briefing Package Components 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. Copyright © 2013 WasteZero 12
13.
Progress Reports and
Case Studies As the program generates significant and posiHve results, WasteZero can help municipal leaders communicate that to the media and to residents. Progress Reports and Case Studies ! 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 With New Waste Reduction Program ! 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. Copyright © 2013 WasteZero 13
14.
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. Copyright © 2013 WasteZero 14
15.
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 Sound Program Design • Proac=ve outreach • Educa=on campaigns • 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 PosiHve Feedback Loop ImplementaHon • Dedica=ng effort to the few weeks before and immediately aler program commencement • 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. Copyright © 2013 WasteZero 15
16.
Program Design We
recommend several steps in the program design process: 1 Preliminary Financial Es=mates 2 Mul=-‐Year Financial Projec=ons 3 Poten=al Opera=onal Savings 4 Stakeholder Engagement & Poli=cal Approval Copyright © 2013 WasteZero 16
17.
Preliminary Financial EsHmates
Change in Amount of Waste and Recycling Retail Pricing of PAYT Bags Copyright © 2013 WasteZero 17
18.
Preliminary Financial EsHmates
WasteZAP (WasteZero AnalyHcs Pladorm) Copyright © 2013 WasteZero 18
19.
Preliminary Financial EsHmates
Change in Amount of Waste and Recycling Retail Pricing of PAYT Bags Number of PAYT Bags Used Overall Financial Impact Copyright © 2013 WasteZero 19
20.
Preliminary Financial EsHmates
Know Your Number Widget Copyright © 2013 WasteZero 20
21.
MulH-‐Year Financial ProjecHons
Program Design ConsideraHons 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. • 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? Illustrative Waste Zero Trash Metering™ Preliminary Scenarios • ConservaHve: 30% waste reduc=on • Moderate: 38% waste reduc=on • Aggressive: 46% waste reduc=on 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. Copyright © 2013 WasteZero 21
22.
MulH-‐Year Financial ProjecHons
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 30,000 25,000 Disposal Savings $1,000,000 24,215 22,565 23,758 Status Quo Scenario 20,000 15,000 10,000 Expected Total = 75,000 tons diverted 5,000 WasteZero Trash 12,823 Metering™ Disposal Savings Annual Tons of MSW Disposed Projected MSW Disposed Expected Total = $4.1M Saved $800,000 (+/-‐ $1.0M) $600,000 $400,000 $200,000 (+/-‐ 20,000 tons) 0 $-‐ 10 12 14 16 18 20 22 Conserva=ve (30%) Moderate (38%) Aggressive (46%) Copyright © 2013 WasteZero Fiscal Year 14 15 16 17 18 19 20 21 22 23 Aggressive (46%) Moderate (38%) Conserva=ve (30%) Fiscal Year 22
23.
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. ! 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 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. Copyright © 2013 WasteZero 23
24.
PAYT Breakout StaHons
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. 1 Preliminary Financial Es=mates 2 Mul=-‐Year Financial Projec=ons 3 Poten=al Opera=onal Savings 4 Stakeholder Engagement & Poli=cal Approval Copyright © 2013 WasteZero 24
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