HomeMy WebLinkAboutPublic Hearing & Approval of Resolution No. 4259, Establishing Solid Waste Collection Fees for Solid Waste Services.pdf Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Public Hearing & Adoption of Resolution No. 4259 – Establishing Solid
Waste Collection Fees for the Solid Waste Services.
MEETING DATE: June 7, 2010
AGENDA ITEM TYPE: Action
RECOMMENDATION: Adopt Resolution No. 4259 after holding a public hearing and
taking comment on the proposed fees.
BACKGROUND: The City establishes the fees for Solid Waste Collection services by
resolution, after a public hearing.
The previous Resolution No. 4108 established rates for two fiscal years, FY09 and FY10. In
order to fund the operations and capital replacement of the Collection division for the coming
year (FY11- Recommended Budget), it is estimated that a 5% rate increase is needed for all
Solid Waste Collection services. The attached resolution incorporates a 5% increase.
The Resolution also seeks to clarify fees for Large Items & Excess Trash (Section D) and for
Return Services (Section E.) In the previous resolution, these services were referred to as being
“Special Pick-Ups” and requiring an additional charge, but were not specifically priced.
The Curbside Recycling Fees are established in a different resolution, and we are not
recommending any change in those fees for the coming year (see below, Unresolved Issues.)
UNRESOLVED ISSUES: Upcoming Rate Study: One of the weaknesses of our existing rate
schedule is that it has not been specifically examined/updated for some significant changes that
have occurred in our Solid Waste operations: Direct hauling of trash to Logan Landfill (not just
to Story Mill Landfill, as in the past), the establishment of Curbside Recycling services, and the
development of roll-off container services.
In the coming months, we expect that a rate study will advise us on any changes that should be
made to address these issues among the City’s Solid Waste customer classes (automated weekly
collection, dumpsters, roll-off containers, etc.) As such, we are recommending that only one
year of rates (FY11) be adopted at this time, and we are not recommending an increase to the
Curbside Recycling Fees (contained in a different resolution.)
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ALTERNATIVES: If the rate resolution is not adopted, we will need to make cuts to our
operating plans – or utilize cash reserves for current operations. If the Commission does not
wish to fund the Rate Study, we will need to make time for some policy determinations
regarding how to continue to operate and replace equipment within the Solid Waste division,
including curbside recycling services.
FISCAL EFFECTS: This rate increase will go into effect for garbage service beginning on
July 1, 2010. It is estimated to increase solid waste revenues by approximately $83,000 for the
year, all of which is deposited to the Solid Waste Fund.
For our typical resident, utilizing a 65 gallon tote for weekly service, their garbage fee will
increase by $0.84/month, from $16.72 to $17.56.
Attachments: Resolution No. 4259
Solid Waste Fund Estimated Revenues & Expenses
Report compiled on: June 1, 2010
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NOTICE
HEARING ON FINAL ADOPTION OF COMMISSION RESOLUTION NO.4259 –
ESTABLISHING SOLID WASTE COLLECTION FEES FOR THE CITY OF
BOZEMAN, MONTANA SOLID WASTE SERVICES.
NOTICE IS HEREBY GIVEN, pursuant with MCA 7-6-4013, said Commission
Resolution No. 4259 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, June 7, 2010, 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. 4259, 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. 4259, average residential solid waste customers will
increase by $0.84 per month.
Dated this 26th day of May, 2010
___________________________
Stacy Ulmen
City Clerk
Legal Ad
Publish: Sunday, May 30, 2010
Sunday, June 6, 2010
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Commission Resolution No. 4259
COMMISSION RESOLUTION NO. 4259
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ESTABLISHING SOLID WASTE COLLECTION 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 Bozeman City Commission did regularly pass Commission Resolution
No. 4108 on the 23rd day of June 2008, which Resolution established a revised solid
waste collection fee schedule; 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 7th day of June, 2010.
__________________________________
Jeff Krauss, Mayor
ATTEST:
__________________________________
Stacy Ulmen
City Clerk
APPROVED AS TO FORM:
__________________________________
Greg Sullivan
City Attorney
166
Commission Resolution No. 4259
SCHEDULE A
Solid Waste Collection Fees, based on a 30-day month
Effective on July 1, 2010
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: July 1, 2009 July 1, 2010
35 Gallon Tote $ 10.96 $ 11.51
65 Gallon Tote $ 16.72 $ 17.56
100 Gallon Tote $ 21.43 $ 22.50
220 Gallon Tote $ 37.39 $ 39.26
300 Gallon Tote $ 46.88 $ 49.22
450 Gallon Tote $ 67.54 $ 70.92
Monthly Collection:
35 Gallon Tote $ 8.13 $ 8.54
* 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. Dumpster Fees – Maximum fees for the following services:
Dumpster/Pickup Per Week July 1, 2009 July 1, 2010
2YD – 1/WEEK $ 59.54 $ 62.52
2YD – 2/WEEK $ 121.60 $ 127.68
2YD – 3/WEEK $ 184.01 $ 193.21
2YD – 4/WEEK $ 246.41 $ 258.73
2YD – 5/WEEK $ 308.82 $ 324.26
2YD – 6/WEEK $ 371.23 $ 389.79
2YD – 7/WEEK $ 433.63 $ 455.31
3YD – 1/WEEK $ 78.58 $ 82.51
3YD – 2/WEEK $ 160.50 $ 168.53
3YD – 3/WEEK $ 242.00 $ 254.10
3YD – 4/WEEK $ 323.96 $ 340.16
3YD – 5/WEEK $ 405.76 $ 426.05
3YD – 6/WEEK $ 486.52 $ 510.85
3YD – 7/WEEK $ 569.34 $ 597.81
4YD – 1/WEEK $ 97.97 $ 102.87
4YD – 2/WEEK $ 199.15 $ 209.11
4YD – 3/WEEK $ 300.34 $ 315.36
4YD – 4/WEEK $ 401.51 $ 421.59
4YD – 5/WEEK $ 502.70 $ 527.84
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Commission Resolution No. 4259
4YD – 6/WEEK $ 603.83 $ 634.02
4YD – 7/WEEK $ 705.06 $ 740.31
6YD – 1/WEEK $ 136.74 $ 143.58
6YD – 2/WEEK $ 245.50 $ 257.78
6YD – 3/WEEK $ 419.01 $ 439.96
6YD – 4/WEEK $ 556.62 $ 584.45
6YD – 5/WEEK $ 700.48 $ 735.50
6YD – 6/WEEK $ 841.22 $ 883.28
6YD – 7/WEEK $ 981.96 $ 1,031.06
8YD – 1/WEEK $ 199.46 $ 209.43
8YD – 2/WEEK $ 402.57 $ 422.70
8YD – 3/WEEK $ 605.67 $ 635.95
8YD – 4/WEEK $ 808.77 $ 849.21
8YD – 5/WEEK $ 1,011.89 $ 1,062.48
8YD – 6/WEEK $ 1,214.99 $ 1,275.74
8YD – 7/WEEK $ 1,418.09 $ 1,488.99
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.
C. Roll-Off Container Fees:
Size Service Fee
July 1, 2009
Service Fee
July 1, 2010
Rental Fee
40YD $340.00 $357.00 $3.00
30YD $334.00 $350.00 $2.00
20YD $329.00 $345.00 $1.00
D. 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. Excess Trash Fee:
Current Service Excess Trash Fee
35 Gallon Tote $4.18 for each additional 35 gallons of refuse.
65 Gallon Tote $5.36 for each additional 65 gallons of refuse.
100 Gallon Tote $7.14 for each additional 100 gallons of refuse.
E. Return Service Fee: A $20.00 fee may be charged for a special return requested by
a customer who did not have their container out on time for regular pick-up.
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Solid Waste Collection - Estimated Revenues & ExpensesFY11 Budget PreparationBudgeted Annualized ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATEDGrowth Rate 0.0%2%1%1%1%1%Proposed Rate Increase5.0%5%3%3%3%3%FY10 FYE10 FY11 FY12 FY13 FY14 FY15Estimated Revenues: Collection Collection Collection Collection Collection Collection Charges for Services - Collections 1,401,847$ 1,406,660$ 1,506,533$ 1,551,729$ 1,598,281$ 1,646,229$ 1,695,616$ Dumpster Revenue 525,456$ 501,944$ 537,582$ 559,247$ 581,784$ 605,230$ 629,621$ Special Pickup 37,857$ 26,880$ 28,788$ 29,949$ 31,156$ 32,411$ 33,717$ Rolloff Service Fee 207,182$ 111,948$ 119,896$ 124,728$ 129,755$ 134,984$ 140,424$ Rolloff Disposal Fee 120,750$ 92,951$ 99,550$ 103,562$ 107,736$ 112,077$ 116,594$ Rolloff Container Rentals 21,121$ 7,271$ 7,787$ 8,101$ 8,427$ 8,767$ 9,120$ Miscellaneous Revenue -$ 14,064$ 14,767$ 15,210$ 15,667$ 16,137$ 16,621$ Interest Earnings 50,000$ 47,241$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ County Contract 10,000$ 39,800$ -$ -$ -$ -$ -$ Commercial Cardboard 15,000$ 12,165$ 12,165$ 80,000$ 80,000$ 80,000$ 80,000$ Total Estimated Revenues:2,389,212$ 2,260,924$ 2,377,069$ 2,522,525$ 2,602,804$ 2,685,835$ 2,771,713$ Proposed Expenses:Existing Personnel 988,482$ 992,597$ 981,840$ 1,021,114$ 1,061,958$ 1,104,436$ 1,148,614$ New Personnel -$ -$ -$ -$ -$ -$ Operations 1,117,825$ 996,675$ 1,122,974$ 1,167,893$ 1,214,609$ 1,263,193$ 1,313,721$ Depreciation Expense 230,000$ 250,000$ 260,000$ 270,000$ 290,000$ 290,000$ 290,000$ Total Proposed Expenses:2,336,307 2,239,272 2,364,814 2,459,007 2,566,567 2,657,629 2,752,335 Operating Income/(Deficit)52,905 21,652 12,255 63,519 36,238 28,205 19,378 45 Day Operating Reserve 288,038$ 276,075$ 291,552$ 303,165$ 316,426$ 327,653$ 339,329$ 169