Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Amending The Franchise Fee For Commercial Sanitation Services To 25% Effective October 1, 2016.
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
Pursuant to Ordinance O-99-29 dated September 15, 1999, Chapter 50 of the Code of Municipal Ordinances, “Solid Waste and Recycling Management” was amended to provide for a franchise fee to be charged for commercial sanitation services with the rate of the said franchise fee to be established by resolution of the City Commission.
The franchise fee rate is currently established at 20% of gross receipts. The last time a review of the franchise fee rate for commercial sanitation services was performed and a rate change implemented was in July of 2006. Staff has reviewed the fee rate and determined that additional collected revenues are needed to offset the administration and operational costs being incurred by the City related to commercial sanitation services provided. The basis for this determination includes the enforcement and disposal fees associated with illegal dumping occurring in the public right of way has increased. Litter in the City’s right of ways, such as our I-95 interchanges and US1, requires additional resources. Also, mandatory recycling for multi-family and commercial properties became effective October 1, 2015 and costs associated with oversight and enforcement to monitor the City Ordinances as well as the thirteen (13) private commercial haulers has been realized.
As indicated above, the commercial sanitation services fee has not changed over the last ten (10) years, and over this period of time, the change in the Consumer Price Index in the Miami/Ft. Lauderdale, South Region has increased 22%. Staff also surveyed surrounding municipal jurisdictions to obtain the prevailing commercial sanitation services franchise fee in the respective jurisdictions and has found that several neighboring cities assess a fee ranging from 21% to 29%.
Staff is proposing the franchise fee payable by each of the permitted private contractors for commercial sanitation services pursuant to Section 50.05 of the City Code be amended to and established as 25% of gross receipts. This increase from 20% to 25% provides for an approximate increase of $100,000 in revenues to offset the realized costs of the commercial sanitation services being provided to the City’s multi-family and commercial community.
Recommended for inclusion on the agenda by:
Dr. Wazir Ishmael, City Manager
Gus Zambrano, Assistant City Manager/Sustainable Development
Sylvia Glazer, Director, Department of Public Works
Jonathan Vogt, Deputy Director of Public Works