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HomeMy WebLinkAbout09-12-16 CC Mtg - A4. Resolution 4714 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director SUBJECT: COMMISSION RESOLUTION NO. 4714 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING SOLID WASTE COLLECTION AND RESIDENTIAL RECYCLING FEES WITHIN THE CITY OF BOZEMAN. MEETING DATE: September 12, 2016 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve Resolution No. 4714 BACKGROUND: The Fiscal Year 2017 budget was approved with Solid Waste Fund collection and recycling fees increasing by 2% in FY17 and an addition 2% in FY18. Not all city residents are customers of our Solid Waste programs – so not all residents will be subject to this change. This increase is estimated to bring in an additional $65,000 in FY17 and $137,000 in FY18, above where current rates are established today. This rate increase is needed to fund the continued operations of the Solid Waste collection and recycling programs. See the attached Revenue and Expense projections. The detailed rate schedule is found in Schedule A of the Resolution. We have added Section G regarding Tenant Deposits to outline the way we are now accepting service requests from tenants/renters when property owners do not want to have potential delinquent tenant solid waste charges applied as a lien to the property. This system allows for a deposit to be held by City Hall, so that there will not be delinquent charges on the tenant account. UNRESOLVED ISSUES: None. ALTERNATIVES: Do not adopt the rate increase. FISCAL EFFECTS: Solid Waste collection and recycling fees will increase 2% for services beginning on October 1, 2016, and by an additional 2% beginning on October 2017. Revenue to the Solid Waste Fund will increase by $5,400/month beginning October 2016, and by an additional $5,500 beginning October 2017. 250 Our typical residential solid waste customers (65 gallon tote) will see an increase by $0.37 per month for service beginning October 1, 2016 and an additional $0.37 per month for service beginning October 1, 2017. Attachments: Resolution 4714 Solid Waste Fund – Revenue and Expense Estimates Report compiled on: Sept 2, 2016 251 NOTICE HEARING ON FINAL ADOPTION OF COMMISSION RESOLUTION NO. 4714 – ESTABLISHING SOLID WASTE COLLECTION AND RESIDENTIAL RECYCLING FEES FOR THE CITY OF BOZEMAN, MONTANA SOLID WASTE SERVICES. NOTICE IS HEREBY GIVEN, pursuant with MCA 7-6-4013, said Commission Resolution No. 4714 Establishing Solid Waste Collection Fees for the City of Bozeman Solid Waste Services is now on file in the office of the City Clerk of the City of Bozeman, subject to inspection of all persons interested, for a period of six (6) days from the date of first publication; that Monday, September 12, 2016, at 6:00 p.m. at a regular session of the Commission of the City of Bozeman, in the Commission Room, City Hall, 121 N Rouse Avenue, Bozeman, Mt has been designated as the time and place when and where the Commission will hear and pass upon any and all objections that may be made to the final passage and adoption of said Commission Resolution No. 4714, subject to such corrections and amendments that may be made upon objections made and filed with the City Clerk as provided by law. Under Commission Resolution No. 4714, typical residential solid waste customers (65 gallon tote) will increase by $0.37 per month for service beginning October 1, 2016 and an additional $0.37 per month for service beginning October 1, 2017. Dated this 1st Day of September, 2016. ___________________________ Robin Crough City Clerk Legal Ad Publish: Sunday, September 4, 2016 Sunday, September 11, 2016 252 Commission Resolution No. 4714 COMMISSION RESOLUTION NO. 4714 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING SOLID WASTE COLLECTION AND RESIDENTIAL RECYCLING FEES WITHIN THE CITY OF BOZEMAN. WHEREAS, the City Commission of the City of Bozeman did adopt Ordinance No. 1493 on the 17th day of May 1999, providing for the billing of solid waste collection fees on a monthly basis; and WHEREAS, said Ordinance No. 1493 provides for the setting of fees by resolution; and WHEREAS, the City of Bozeman continues to incur additional costs in its operation of the collection and disposal of solid waste. NOW, THEREFORE, BE IT RESOLVED, and it is hereby ordered by the Commission of the City of Bozeman, State of Montana: Section 1 To defray the estimated cost and expense of collecting and disposing of solid waste in the City of Bozeman, there is hereby established a schedule of fees to be levied upon all users of the City’s solid waste collection system and those not served by a licensed private solid waste collection service, as set forth in Schedule A, attached hereto, and by this reference made a part hereof. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana at a regular session thereof held on the 12th day of September, 2016. ____________________________________ CARSON TAYLOR Mayor ATTEST: __________________________________ ROBIN CROUGH City Clerk 253 Commission Resolution No. 4714 APPROVED AS TO FORM: ____________________________________ GREG SULLIVAN City Attorney 254 Commission Resolution No. 4714 SCHEDULE A Solid Waste Collection Fees, based on a 30-day month Effective on October 1, 2016 All rates are monthly. A. Automated Collection System Fees For those accounts on the automated collection system, the fees shall be as follows: Weekly Collection: October 1, 2016 October 1, 2017 35/45 Gallon Tote $ 14.24 $ 14.52 65 Gallon Tote $ 18.72 $ 19.09 100 Gallon Tote $ 23.98 $ 24.46 220 Gallon Tote $ 40.05 $ 40.85 300 Gallon Tote $ 50.20 $ 51.21 450 Gallon Tote $ 72.34 $ 73.79 Monthly Collection: 35/45 Gallon Tote $ 10.59 $ 10.80 * Whenever the automated service is provided to a customer for a period of less than one month, there shall be a minimum charge of one month based on the container size issued. B. Recycling Fees Bi-weekly Collection: October 1, 2016 October 1, 2017 100 Gallon Tote $9.74 $9.93 300 Gallon Tote $15.15 $15.45 C. Dumpster Fees – Maximum fees for the following services: Dumpster/Pickup Per Week October 1, 2016 October 1, 2017 2YD – 1/WEEK $ 90.33 $ 92.14 2YD – 2/WEEK $ 156.81 $ 159.95 2YD – 3/WEEK $ 223.30 $ 227.76 2YD – 4/WEEK $ 289.77 $ 295.57 2YD – 5/WEEK $ 356.26 $ 363.38 2YD – 6/WEEK $ 422.73 $ 431.18 3YD – 1/WEEK $ 100.49 $ 102.50 3YD – 2/WEEK $ 177.12 $ 180.67 3YD – 3/WEEK $ 253.76 $ 258.83 3YD – 4/WEEK $ 330.39 $ 337.00 3YD – 5/WEEK $ 407.02 $ 415.16 3YD – 6/WEEK $ 483.65 $ 493.33 255 Commission Resolution No. 4714 4YD – 1/WEEK $ 110.64 $ 112.85 4YD – 2/WEEK $ 197.43 $ 201.38 4YD – 3/WEEK $ 284.21 $ 289.90 4YD – 4/WEEK $ 370.99 $ 378.41 4YD – 5/WEEK $ 457.79 $ 466.94 4YD – 6/WEEK $ 544.57 $ 555.46 6YD – 1/WEEK $ 130.95 $ 133.57 6YD – 2/WEEK $ 238.04 $ 242.80 6YD – 3/WEEK $ 345.13 $ 352.03 6YD – 4/WEEK $ 452.22 $ 461.26 6YD – 5/WEEK $ 559.32 $ 570.50 6YD – 6/WEEK $ 666.41 $ 679.73 8YD – 1/WEEK $ 151.26 $ 154.28 8YD – 2/WEEK $ 278.65 $ 284.23 8YD – 3/WEEK $ 406.05 $ 414.17 8YD – 4/WEEK $ 533.44 $ 544.11 8YD – 5/WEEK $ 660.84 $ 674.05 8YD – 6/WEEK $ 737.24 $ 751.98 Dumpster rental fee for special services (not on a regular monthly account): $1.00 per day. Whenever specialty materials exceed 50 percent of a dumpster’s contents, the per- cubic-yard dumpster capacity dollar amount shall be increased in accordance with the specialty material landfill fees established in the current Solid Waste Management District landfill gate schedule. D. Roll-Off Container Fees: Maximum fees for the following services. Size Service Fee October 1, 2016 Service Fee October 1, 2017 Rental Fee 40YD $364.14 $371.42 $3.00 30YD $357.00 $364.14 $3.00 20YD $351.90 $358.94 $3.00 E. Large Items or Excess Trash Fees: Fees may be charged for additional or special pickup requests, with the fee to be established based on an assessment of the article(s) and services needed. These fees customarily include: a. Large Item Pick-Up: $10.00/piece. b. Freon Removal Fee (appliances): $10.00/piece. c. Excess Residential Trash Fee: Excess Residential Trash Fee $5.00 – up to 35 gallons, and $2.00 – each additional 35 gallons, thereafter 256 Commission Resolution No. 4714 F. Return Service Fee: A $20.00 fee may be charged for a special return requested by a customer who did not have their container out on time for regular pick-up. G. Deposit Amounts: Tenants (those not owning the residence where service is provided) must pay a deposit fee in order to establish service in their own name. Deposits required to establish service are: Weekly Collection: Deposit Amounts 35/45 Gallon Tote $ 50.00 65 Gallon Tote $ 65.00 100 Gallon Tote $ 85.00 Recycling Service: 100 Gallon Tote $35.00 When service is terminated, Deposit Amounts are applied to the outstanding account balance and any residual amounts are returned to the Tenant. Tenants can avoid deposit fees if the property owner signs a Utility Waiver form or if the property owner has already established garbage service at the residence. 257 Solid Waste Fund - Estimated Revenues & ExpensesFY17 Budget PreparationAPPROVED APPROVED ESTIMATED ESTIMATED ESTIMATED ESTIMATEDGrowth Rate 5% 4% 4% 3% 3% 3%Proposed Rate Increase 0% 2% 2% 2% 2% 2%Beginning Balance1,152,734$ 328,014$ 517,106$ 822,776$ 676,305$ 466,714$ Estimated Revenues:FY16 FY17 FY18 FY19 FY20 FY21BudgetCharges for Services - Collections 1,904,900$ 2,174,640$ 2,306,858$ 2,423,585$ 2,546,219$ 2,675,057$ Dumpster Revenue 415,000$ 431,746$ 457,996$ 481,170$ 505,518$ 531,097$ Special Pickup 85,000$ 105,019$ 111,404$ 117,041$ 122,964$ 129,186$ Rolloff Service Fee 218,400$ 221,177$ 234,624$ 246,496$ 258,969$ 272,073$ Rolloff Disposal Fee 65,000$ 76,378$ 81,021$ 85,121$ 89,428$ 93,953$ Rolloff Container Rentals 8,000$ 7,956$ 8,440$ 8,867$ 9,315$ 9,787$ Miscellaneous Revenue 12,500$ -$ -$ -$ -$ -$ Interest Earnings 9,500$ 6,365$ 6,752$ 7,093$ 7,452$ 7,829$ Recycling Compost 6,750$ 13,790$ 14,629$ 15,369$ 16,147$ 16,964$ Curbside Recycling Rates 234,000$ 309,754$ 328,587$ 345,213$ 362,681$ 381,033$ Curbside Commodity -$ -$ -$ -$ -$ -$ Commercial Cardboard -$ -$ -$ -$ -$ -$ Total Estimated Revenues:2,959,050$ 3,346,824$ 3,550,311$ 3,729,957$ 3,918,692$ 4,116,978$ Proposed Expenses:Existing Personnel 1,030,805$ 1,066,597$ 1,186,221$ 1,233,670$ 1,283,017$ 1,334,337$ New Personnel -$ 74,000$ -$ -$ -$ -$ Operations 1,664,922$ 1,907,135$ 1,983,420$ 2,062,757$ 2,145,268$ 2,231,078$ Capital 1,088,043$ 110,000$ 75,000$ 580,000$ 700,000$ 165,000$ Total Proposed Expenses:3,783,770 3,157,732 3,244,641 3,876,427 4,128,284 3,730,415 Operating Income/(Deficit)(824,720) 189,092 305,670 (146,470) (209,592) 386,563 Ending Balance 328,014$ 517,106$ 822,776$ 676,305$ 466,714$ 853,277$ 45 Day Operating Reserve 332,350$ 375,748$ 390,778$ 406,409$ 422,665$ 439,572$ FYI - Rate Study Depreciation Expense 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ 290,000$ Average Annual amt for Capital 543,727$ Operating Days of Cash 44 63 95 75 50 87258