LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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PROPOSED ORDINANCE NO. 41-20 - AMENDMENT TO CITY CODE SECTION 4-3-97 - SANITATION EQUIPMENT SURCHARGE
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RECOMMENDATION:
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That City Council adopt Proposed Ordinance No. 41-20 on second reading.
AN ORDINANCE AMENDING SECTION 4-3-97 OF THE CODE OF THE CITY OF PENSACOLA, FLORIDA; PROVIDING FOR INCREASE IN SANITATION EQUIPMENT SURCHARGE; PROVIDING FOR SEVERABILITY; REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
In accordance with the rate study completed in 2016, City Council approved the implementation of a sanitation equipment surcharge to fund capital equipment replacement. The surcharge was initially set at $1.00 effective June 1, 2017, with an increase to $2.00 scheduled for October 1, 2018, and an increase October 1, 2019, to $2.04 based on the 1.9% CPI. Beginning October 1, 2020, a recommended increase of $1.00 to total $3.04 is based on the current capital equipment replacement schedule for FY2021 and future replacements in order to update the necessary equipment needed for operations.
PRIOR ACTION:
September 10, 2020 - City Council voted to approve Proposed Ordinance No. 41-20 on first reading.
September 26, 2019 - City Council adopted Ordinance No. 22-19 adjusting the monthly sanitation equipment surcharge to $2.04.
September 13, 2018 - City Council adopted Ordinance No.13-18 adjusting the monthly sanitation equipment surcharge to $2.00.
FUNDING:
N/A
FINANCIAL IMPACT:
Approval of the proposed ordinance would set the sanitation equipment surcharge at $3.04 per month, a $1.00 per month increase. The increase is based on the current capital equipment replacement schedule through 2027 effective October 1, 2020, upon adoption on second reading. The increase in the sanitation equipment surcharge is projected to generate an additional $267,800 annually for capital equipment expenditures, which have been incorporated in the FY 2021 Proposed Budget.
CITY ATTORNEY REVIEW: Yes
August 13, 2020
STAFF CONTACT:
Keith Wilkins, City Administrator
Richard Barker, Jr., Deputy City Administrator - Administration & Enterprise
John Pittman, Director Sanitation Services & Fleet Management
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Proposed Ordinance No. 41-20
PRESENTATION: No end