A U D I T E P O R T. Lee County Solid Waste Division Recycling Audit. Internal Audit Department Audit Number June 2012

Transcription

1 A U D I T R Lee County Solid Waste Division Recycling Audit E P O R T Internal Audit Department Audit Number June 2012

2 June 01, 2012 Linda Doggett, COO Re: Audit of Lee County Solid Waste Division- Recycling Dear Mrs. Doggett: The Internal Audit Department has conducted an audit of Lee County Solid Waste Division- Recycling. Chuck Short, CIA, has completed this review. The response to the auditor s conclusions, issues and recommendations is attached to this report. The auditors wish to thank Lee County Solid Waste Division employees for their assistance and cooperation during the review. This Report has been posted to the Clerk of Courts website under Internal Audit, Audit Reports. The hyperlink to the report has been sent to the Lee County Board of County Commissioners and appropriate parties. Sincerely, Chuck Short, Director Internal Audit Department CTS/mf Cc: Charlie Green

3 Table of Contents Lee County Solid Waste Division Recycling Audit Report Page Purpose 1 Scope 1 Conclusion 1-2 Background 2-3 Findings & Recommendation 3-5 Exhibit 1 6 Response 7

4 Lee County Solid Waste Division Recycling Audit Report Purpose: The purpose of this audit was to examine the complaints by residents of 23 Mobile Home Parks and a Certified Recovered Material Dealer regarding the Solid Waste Division s objection to their collection and sale of recyclable materials (newspaper, cardboard, and aluminum cans) to specific dealers. Scope: 1.) Interview Solid Waste management, Mobile Home Park managers, and State Certified Recovered Material Dealers. 2.) Review the Solid Waste Division, the Mobile Home Parks, and the Certified Dealer procedures for compliance with the Florida Statutes and Lee County Ordinances for Garbage, Recycling and Solid Waste Collection. 3.) Request correspondence and financial records from the Solid Waste Division. 4.) Review Board of County Commissioners meetings where recycling was a topic discussed. Conclusion: The Board of County Commissioners passage of County Ordinance Number 11-27, by a 4-1 vote, on November 15, 2011, satisfactorily resolved the conflict about the continued collection and sale of recyclable materials by the specific Mobile Home Parks and their classification as Residential for Solid Waste Service. This Ordinance also amended the Ordinance, removing the 2015 Sunset date. The Solid Waste Director and a County Commissioner stated that this program was costing the County an estimated $150,000 annually. Recyclable materials collected by the 23 Mobile Home Parks for 12 months ending March 12, 2012, were priced at $80,000 of which the Parks received $25,000. The County, however, is ok with the residents collecting and selling their recyclables if they personally deliver the items to a State Certified Recovered Materials Dealer. The five Recovered Materials Dealers approved in the County Ordinance to collect recyclable material have been certified as required by The 2010 Florida Statutes, Title XXIX, Chapter 403, Public Health, Environmental Control. 1

5 The Solid Waste Division s policy and procedures are in compliance with the Florida Statutes for Public Health and Environmental Control of Solid Waste (Flow Control). Background: There have been 20 Ordinances passed by Lee County Commissioners for Lee County s Garbage and Solid Waste Collection and Disposal Program since Ordinance Number stated that allowing Mobile Home Park collection of recyclable material and sale to non-franchised dealers would cease on September 30, Ordinance Number Exhibit C Title is Mobile Home/Recreational Vehicle (MH/RV) Parks to be considered Commercial Businesses Beginning March 31, 2011 and through September 30, BOCC Meeting 5/31/11 minutes transcript (page 37) Commissioner Judah stated that We were given information that with the exemptions for the 23 to 25 Mobile Home Parks we re looking at something in excess of $300,000 in revenue. What we re trying to do is treat everybody fair. There are 110 Mobile Home and RV parks. 23 will be treated differently. BOCC Meeting 5/31/2011 minutes transcript (Page 43) Commissioner Mann stated, at my home, I don t live in a park. I am serviced by the Counties that pick up my recyclables on Wednesday if it s not a holiday. I take my own aluminum. I have a manual can crusher and I save aluminum and then twice a year or so I go some place and sell my aluminum. Pick up a massive $15 or $17, but it s kind of a fun thing and the grandkids like crushing the cans. Is it over simplifying to say that isn t it what the parks are doing? BOCC Meeting 5/31/2011 minutes transcript (page44) Lindsey Sampson replied; The small difference is what you mentioned is allowed under the current ordinance, the difference is whether you hire somebody to come and pick it up and take it to that center or whether you take it down there yourself. And currently, the Mobile Home Parks may take the materials down there themselves. However, the current ordinance does not allow them to hire a company to come and pick it up, Garden Street or anybody else. BOCC Meeting 5/31/2011 minutes transcript (page44), Commissioner Manning I would like to move that we eliminate the 2015 Sunset Provision Mobile Home Park management was advised in person and by letters during 2011 that they would be classified as Business accounts and charged a higher rate for their Solid Waste collection if they continued to sell their recyclable material to a Certified Recovered Material Dealer for hauling. The current Ordinance Number 11-27, approved November 15, 2011, supersedes all prior amended and/or repealed ordinances. 2

6 In Ordinance Number 11-27, the 23 Mobile Home Parks were permitted to use non-franchised collection contractors for specified recoverable materials collection and they were classified as Commercial Residential accounts for Solid Waste services. Findings: (Source of information- and BOCC meeting transcripts) May 26, 2011, Lindsey Sampson to the Board of County Commissioners: Full control for both solid waste and recycle material is important for the economic stability of the County s Solid Waste System. June 6, 2011, Interoffice memo from Keith Howard, Deputy Director, Solid Waste Department to Karen Hawes, County Manager : Twenty-three MHP s would be vested (Exhibit C of the Ordinance). These MHP s would continue to have the ability to contract for the specific recoverable material services as outlined in the proposed ordinance. This vesting is permanent (no Sunset date) regardless of recovered materials vendor or park ownership changes and that for the purposes of refuse and recycling services that these properties are considered businesses. June 14, 2011, Lindsey Sampson sent letters to the 23 MHP s advising them of the change in the ordinance and the impact the change has on the MHP s. He also advised that they would now be classified as a business and would receive an increase in fees from the County s franchise hauler for pick-up of bulky items. July 14, 2011, from Garden Street Attorney Miller to County attorney Fraser: Please call me ASAP. Mr. Weber is being contacted by various parks in the Veolia franchise area, who were visited today by County employee Emory Smith. He is telling them that they have to either agree to be treated as a business to continue recycling for fundraising or opt out and recycle only with Veolia by Aug 1; that there are no BOCC meetings in August and they cannot opt out after August 1. If they do not IMMEDIATELY cease and desist we will file suit for injunctive relief because the ordinance as currently written is not what the BOCC passed. July 19, 2011, letter from Lindsey Sampson to Doug Meurer: On July 12, 2011, at the County attorney s direction, I asked Mr. Smith to not visit any more parks until further notified. November 14, 5:22 PM, from Tom Giblin, Bond Counsel, (Nabors Giblin & Nickerson P.A.) to County Attorney, Michael Hunt 3

7 Subject: Recycling Flow Control. Michael, I reviewed the Indenture of Trust with respect to the Board of County Commissioners continuing to review the status of certain mobile home parks setting aside recyclables for their private use for a specified period of time. I don t believe that constitutes a violation of any covenants in the Indenture, including flow control provisions. Please let me know if I can be of any further assistance. Tom Giblin. Giblin s response was forwarded by Michael Hunt on November 15, A M with Cc: to Lindsey Sampson; Five County Commissioners; Assistant County Attorney Fraser; County Manager Hawes; and four assistant County Managers. A copy of the above was forwarded by Commissioner Mann s office on February 20, 9:10 AM to Audit Director Chuck Short. November 15, 2011, BOCC Meeting Transcript; Discussion of the Amendment to our Recycling Ordinance. The review of the Solid Waste Ordinance regarding recycling by 23 Mobile Home Parks began on page 33 of the transcript of the meeting. Public input was transcribed from page 33 through page 48. Thirteen citizens representing some of the Mobile Home Parks made public input to the subject for discussion by the BOCC. Commissioner Judah discussed the issue on pages 49 through page 55. He stated the County has contracts with franchised haulers to pick-up recoverable materials and bring in the revenue expected about $300,000, $150,000 to the County. Commissioner Judah stated that I have been prepared and indicated to many I ve talked to over the last several months to forgo the $300,000. Commissioner Judah stated that this is not a trivial issue and a lot more than the perception that Lee County is taking away your rights with what you can do with the recoverable materials. I want to make it clear, that is not the case. We do need to get to the point of the transport issue and I want to make sure we have an understanding. Even if you didn t have the exemption you could sell your newsprint and aluminum by transporting it on your own. Solid Waste Financial Results for 2011: Revenue--$85.6 million; Expenditures--$57.4 million; Net Revenue applied to Debt Service--$28.2 million The Solid Waste Revenue Bond, Series 2001 principal balance of $34.1 million was paid off on October 1, 2011, with funds from various Solid Waste reserve accounts ($20.6 million); and Debt Service revenue from operations ($13.5 million), saving ($2.9 million) interest costs. 4

8 Effects: Result: The auditor conducted personal interviews with 9 of the 23 Parks, (Exhibit 1) and confirmed participation in the recycle program with the remaining 14 Parks by confirmation letter. Seven responses have been received. Use of the proceeds includes: improvements in the community facilities and grounds; social functions; recreation activities; tuition assistance to students attending Lee Tech; contribution to church schools; veteran s memorials, etc. The issue of collection and pick-up or delivery of recyclable materials by citizens of 23 Mobile Home Parks and a State Certified Collected Materials Dealer has been resolved by a majority vote (4-1) of the Board of County Commissioners at the November 15, 2011 Board meeting approving Ordinance Recommendation: That the County Commissioner and Director of the Solid Waste Division who object to the 23 Mobile Home Park citizens using a specific Certified Collected Materials Dealer to haul away their collected recyclables willingly accept the provisions of the amended ordinance. 5

9 Exhibit 1 23 Mobile Home Parks American Outdoors Tamiami Trail, Fort Myers, Fl Bayside Estates San Carlos Blvd., Fort Myers Beach, Fl Citrus Park Trost Blvd., Bonita Springs, Fl Corkscrew Woodlands Corkscrew Woodlands Blvd., Estero, Fl Cypress Bend RV 910 Terrene Ct, Ste 200, Bonita Springs, Fl Fountain View RV N. Tamiami Trail, North Fort Myers, Fl Imperial Bonita Estates 2700 Bourbonniere Dr., Bonita Springs, Fl Indian Creek San Carlos Blvd., Fort Myers Beach, Fl Jamaica Bay S. Tamiami Tr., Fort Myers, Fl Lake Arrowhead 2860 US 41 N. North Fort Myers, Fl Laurel Estates 2860 US 41 N. North Fort Myers, Fl Leisure Time Park Tamiami Trail, Bonita Springs, Fl Lime Tree Campsites S. Tamiami Trail, Bonita Springs, Fl Mobile Manor/Tropicana McGregor Blvd., Fort Myers, Fl Old Bridge Village Paul Revere Loop, North Fort Myers, Fl Palmetto Palms RV Resort Summerlin Rd., Fort Myers, Fl Raintree RV Tamiami Trail, Fort Myers, Fl Riverwood Plantation 4600 Robert E. Lee Blvd. E., Estero, Fl Siesta Bay RV Resort 1911 & 1933 Summerlin Rd., Fort Myers, Fl Swan Lake Village 207 Swan Lake Drive, North Fort Myers, Fl Tamiami Village N. Cleveland Ave., North Fort Myers, Fl Thunderbird MHP 200 Derwent Blvd., Fort Myers, Fl Myerlee Gardens 1351 Myerlee Gardens Ave., Fort Myers, Fl Recovered materials Dealers: Allied Recycling Garden Street Iron & Metal All Scrap SP Recycling A & D Scrap Materials Inc. 6

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