NOLA Recycles 2010

I read your white paper on recycling and I agree with all it with the exception of cost. The real cost of garbage collection alone is not truly reflected in the $12/mo. charge for collection. The actual cost is more than double the fee charged. In the French Quarter, due to the frequency of collection the actual cost is more than 10 times the fee charged per month.

Your paper states that the sanitation fee is part of the water bill. What you do not say and what you probably do not know is that a large percentage of people do no pay the sanitation fee when they pay their water bill. The S&WB does not really care if people pay their sanitation bill, they are only concerned with the water and sewer charges being paid.

I also disagree with the per month cost for service for recycling that is stated in your paper. Many of the areas of the city are still unpopulated or underpopulated. The cost savings that you expect due to a larger customer base are negated by the fact that the base is so widely dispersed throughout the service area. This is also a factor in the waste collection and is the main reason why comparison of costs in Jefferson Parish to Orleans Parish are not valid.

Again, I agree that we need to have recycling in all of the forms that you have proposed. The truth is that it will be much more expensive than your analysis indicates, at least for the foreseeable future.

The first thing that must happen is that the City must start billing people directly for sanitation services, both bi-weekly waste disposal and recycling. This will allow the city to force people to pay by using the threat of discontinuation of services that does not now exist. This will increase the amount of fees collected and give the City greater control of the funding source.

Second, people have to understand what the true cost of services are and be prepared to pay for them. The $12/mo. sanitation fee covers only 40 percent of the actual cost of waste disposal. The actual cost is between $24 and $30 dollars. The remaining cost for disposal must be made up from the general fund of the city budget. The actual cost for the service must be charged to the users and the program made self sustaining.

Third, if we are going to institute recycling the fees applied for this service must be realistic. There is no way that $1/mo. is going to pay for the cost of this service even if you include the reduction in costs for waste disposal at the landfill and fee received for sale of recyclable materials to brokers. The market for recyclables is too volatile to depend on the revenue initially received. It will take 3-5 years for the system to get up and running and provide the necessary data for realistic cost and revenue projections. If recycling is started again in New Orleans the minimum cost per household must be no less than $12/mo. This is a realistic cost for the service and if people really want it they will be willing to pay. Once the program matures and there is a good understanding of the associated cost and revenue streams then the price may be reduced. However, there is no reason why the City should start a program that will knowingly impose an unreasonable hidden cost. That is not the way to create a sustainable program.

Again, I agree with and support your goals. My only request is that you be realistic about what it will cost and act accordingly. It is the right thing to do and the citizens of this city need to understand that sometimes that costs money.