Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Revising The Monthly Sanitation Fee For Collection And Disposal Services Provided By The Environmental Services Division Of The Public Works Department.
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The monthly fees for sanitation services were established on February 5, 1997, revised on September 7, 1999, September 30, 2000, June 2, 2004, May 21, 2008, October 6, 2010, and September 21, 2011.
The fees for sanitation services provided to residents is currently $31.00 per month. This fee for sanitation services have not been adjusted since 2011, meanwhile solid waste program costs have steadily increased over the past eight years. Cost have increased for solid waste, recycling and commingled collection, solid waste disposal and commingled disposal and recycling processing.
Employee staffing costs, benefit costs, equipment, fuel, pension obligations, and liability insurance costs have all increased. Additionally, the City has experienced a substantial loss of revenue due to the downturn of the recycling markets and now has to budget recycling processing costs. Cost increases for sanitation services, although appropriate, were not implemented, since the residents of the City had experienced tax increases as a result of financial urgency. Additionally, the dissolution of the Resource Recovery Board resulted in the City receiving $2,719,299.00, a portion of which was used to delay necessary rate increases.
During this same timeframe, from 2009 to 2019, there has been a 24% increase in the Consumer Price Index (CPI). Had an annual increase been imposed, the proposed increase would not be as substantial.
Under the proposed option with ratification of this contract, effective October 1, 2019, the new Monthly Solid Waste Fee for sanitation services provided to customers will be $38.00 a month. Beginning October 1, 2020 and subsequent years, the adjustment to the monthly sanitation fee will increase proportionately to the allowable increases per contract and the administration cost of the program. Based on staff analysis, the projected aggregate sanitation fee is estimated to be adjusted as follows, however, the actual increase would be determined on an annual basis based on contractual obligations and program administration costs:
• 6.43% effective October 1, 2020
• 5.32% effective October 1, 2021
• 3.56% effective October 1, 2022
• 2.50% beginning October 1, 2023 and out-years.
All annual increases to the monthly Solid Waste Fee include increases for Operating Expenses, Waste Pro Collection, Solid Waste Disposal, Recycling Processing, Yard Waste Processing, Bulk Waste Disposal and Household Hazardous Waste Disposal.
Recommended for inclusion on the agenda by:
Charles Lassiter, Assistant Director of Department of Public Works
Peter Bieniek, Director of Department of Public Works
George R. Keller, Jr., CPPT, Assistant City Manager, Public Safety