Agenda - Council - 09/13/1982 - Special

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20 I I I COMPENSATION TECHNIQUES Compensation is a tool for dealing with impacts that cannot be mitigated, or can only be mitigated to some extent. Theoretically, it provides a way of making an affected community or individuals as well off after the facility is developed as before. Compensation provides a way to spread the costs of the facility throughout society and respond to the long-term impacts and risks associated with the facility. I I For compensation to be an effective means of dealing with the local risks and costs of solid waste disposal facilities, it is necessary to reduce or elimi- nate all other impacts associated with such facilities. The combination of techniques that should be used may have to be decided on a case-by-case basis. Negotiation between an affected community and a facility owner or operator will be necessary. I I There are a variety of techniques available for providing compensation to communities or individuals. Although cash payments are the most common forms of compensation, they may be inappropriate if other forms of compensation are available. This section discusses three general categories of compensation: 1) monetary payments, 2) contingency funds and 3) in-kind replacement or restora- tion of resources or services affected by a waste disposal facility. Several techniques included in these three categories are described in detail. Each technique is examined to determine how appropriate it is for particular impacts and who may be eligible for compensation. In addition, the advantages and disadvantages .of each technique are discussed. At the outset, it should be noted that direct payment to relocate residents from a landfill area is not discussed in this report. State law already covers issues dealing with relocation and purchase of private property. Eminent domain, the right of the state and local units of government to condemn and acquire land for public purposes, automatically provides compensation to a landowner. Compensation in this discussion focuses on compensatory measures available to parties not considered eligible under eminent domain. MONETARY PAYMENTS I I I I I DIRECT CASH PAYMENTS The simplest form of compensation is a direct lump-sum cash payment to a host community or individuals living near a facility. Such a payment could be made before the facility is in operation. Direct lump-sum payments are easy to administer, and they provide the recipient with considerable flexibility in how the compensation is used. However, it is difficult to determine-the amount of compensation to be paid. If the state or other public agency makes a direct cash payment of a certain amount, it may set undesirable precedents for other facility siting efforts. Cash payments to a city government may not address specific impacts on those most affected. A city government that receives a cash payment may not spend the money in a way that directly compensates residents who are most likely to suffer the severest adverse impacts. However, the community could use the cash payment to provide buffer zone amenities or improvements. In this way, resi~ dents nearest the facility would benefit directly from the financial compensa- tion paid to the community.